Old National Acquires Anchor, Will Expand Into Wisconsin
July 28, 2016 at 4:25 p.m.
By Staff Report-
With $2.2 billion in total assets, $1.5 billion in total loans, $1.8 billion in deposits and $360 million in common shareholders’ equity as of Sept. 30, Anchor is a savings and loan holding company with AnchorBank FSB as its wholly-owned subsidiary, the announcement states. Founded in 1919, AnchorBank operates 46 banking centers, including 32 banking centers in the Madison, Milwaukee and Fox Valley area, and 21 in Madison.
The partnership marks a continuation of Old National’s strategy to focus the expansion of its franchise in demographically attractive and economically vibrant markets, the joint announcement states. When completed, the transaction will position Old National as the seventh largest deposit holder in the state of Wisconsin and the fifth largest in the Madison area, according to the release.
Under the terms of the agreement, Anchor shareholders may elect to receive either 3.5505 shares of Old National common stock or $48.50 in cash for each share of Anchor they hold, subject to no more than 40 percent of the outstanding shares of Anchor may receive cash. Based on Old National’s 10-day average closing share price through Friday of $13.34, this represents a total transaction value of approximately $461 million, though the release notes the transaction value is likely to change until closing due to fluctuations in the price of Old National common stock. It is also subject to adjustment under certain limited circumstances as provided in the merger agreement.
The definitive merger agreement has been unanimously approved by the board of directors of both Old National and Anchor. The transaction remains subject to regulatory approval and the vote of Anchor shareholders.
The transaction is anticipated to close in the second quarter of 2016.
“This partnership, which marks Old National’s entry into the great state of Wisconsin, is a natural extension of our franchise and our growth strategy,” said Old National President and CEO Bob Jones in the announcement. “Not only does it position Old National in strong, vibrant markets with proven growth potential, it also represents an exceptional cultural fit and an opportunity to continue the strong legacy of service that distinguishes AnchorBank.”
“Today’s transaction is a culmination of the tremendous turnaround at Anchor and a win-win for our communities, customers, employees and shareholders,” AnchorBank President and CEO Chris Bauer is quoted as saying. “Old National Bank has a strong history of growth and a deep commitment to providing high-quality community banking and a rewarding workplace for its employees. We’re proud to become their newest partner and believe the legacy of AnchorBank’s community-based customer service will continue moving forward.”
Founded in Evansville in 1834, Old National Bancorp is the largest financial services holding company headquartered in Indiana and, with $11.9 billion in assets, ranks among the top 100 banking companies in the U.S., according to information from the two banks. Its footprint includes Indiana, Kentucky and Michigan.[[In-content Ad]]
With $2.2 billion in total assets, $1.5 billion in total loans, $1.8 billion in deposits and $360 million in common shareholders’ equity as of Sept. 30, Anchor is a savings and loan holding company with AnchorBank FSB as its wholly-owned subsidiary, the announcement states. Founded in 1919, AnchorBank operates 46 banking centers, including 32 banking centers in the Madison, Milwaukee and Fox Valley area, and 21 in Madison.
The partnership marks a continuation of Old National’s strategy to focus the expansion of its franchise in demographically attractive and economically vibrant markets, the joint announcement states. When completed, the transaction will position Old National as the seventh largest deposit holder in the state of Wisconsin and the fifth largest in the Madison area, according to the release.
Under the terms of the agreement, Anchor shareholders may elect to receive either 3.5505 shares of Old National common stock or $48.50 in cash for each share of Anchor they hold, subject to no more than 40 percent of the outstanding shares of Anchor may receive cash. Based on Old National’s 10-day average closing share price through Friday of $13.34, this represents a total transaction value of approximately $461 million, though the release notes the transaction value is likely to change until closing due to fluctuations in the price of Old National common stock. It is also subject to adjustment under certain limited circumstances as provided in the merger agreement.
The definitive merger agreement has been unanimously approved by the board of directors of both Old National and Anchor. The transaction remains subject to regulatory approval and the vote of Anchor shareholders.
The transaction is anticipated to close in the second quarter of 2016.
“This partnership, which marks Old National’s entry into the great state of Wisconsin, is a natural extension of our franchise and our growth strategy,” said Old National President and CEO Bob Jones in the announcement. “Not only does it position Old National in strong, vibrant markets with proven growth potential, it also represents an exceptional cultural fit and an opportunity to continue the strong legacy of service that distinguishes AnchorBank.”
“Today’s transaction is a culmination of the tremendous turnaround at Anchor and a win-win for our communities, customers, employees and shareholders,” AnchorBank President and CEO Chris Bauer is quoted as saying. “Old National Bank has a strong history of growth and a deep commitment to providing high-quality community banking and a rewarding workplace for its employees. We’re proud to become their newest partner and believe the legacy of AnchorBank’s community-based customer service will continue moving forward.”
Founded in Evansville in 1834, Old National Bancorp is the largest financial services holding company headquartered in Indiana and, with $11.9 billion in assets, ranks among the top 100 banking companies in the U.S., according to information from the two banks. Its footprint includes Indiana, Kentucky and Michigan.[[In-content Ad]]
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