Old National to Acquire Anchor Bank

Old National Bancorp of Evansville and St. Paul, Minnesota-based Anchor Bancorp, Inc. have jointly announced that Old National will acquire Anchor through a stock and cash merger.

When completed, Old National will be the seventh largest deposit holder in the Twin Cities market.

As of June 30, Anchor Bank had $2.1 billion in total assests, $1.6 billion in loans, $1.7 billion in deposits, and $164 million in common shareholders' equity.

Anchor has 18 bank locations. The anticipated closing date is in the early first quarter of 2018.

Anchor Bank is not affiliated with the former AnchorBank in Madison, Wisconsin which Old National acquired in 2016.

"This partnership, which marks Old National's entry into Minnesota, is a natural extension of our franchise," said Old National President & CEO Bob Jones. "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."

"As we were looking for new ways to help Anchor support our growth, and the growth of our customers, we concluded that partnering with a larger organization would be the best option for our shareholders, employees and customers," Carl Jones, Anchor Bank CEO said. "I'm looking forward to introducing the Twin Cities to Old National Bank, which has built a solid reputation for Midwestern sensibility, community-values and strong underlying ethics."

Old National was founed in Evansville back in 1834. As of June 30, it has 188 banking centers and $15 billion in total assets.

It's the largest financial services holding company headquartered in Indiana.

Terms of the agreement

Anchor shareholders will receive 1.35 shares of Old National common stock and $2.625 in cash for each share of common stock of Anchor that they hold. Based on Old National's closing share price on August 7, 2017 of $16.45, this represents a total transaction value of around $303.2 million.

Due to fluctuations, the value is likely to change.

The definitive merger agreement has been unanimously approved by the Board of Directors of both Old National and Anchor.

(This story was originally published on August 8, 2017)


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