Magazine article American Banker

Old National to Buy 24 B of A Branches in Indiana, Michigan

Magazine article American Banker

Old National to Buy 24 B of A Branches in Indiana, Michigan

Article excerpt

Byline: Chris Cumming

Old National Bancorp (ONB) of Evansville, Ind., is taking advantage of Bank of America's cost-cutting efforts by snapping up some of the megabank's unwanted branches.

The parent company of Old National Bank announced Wednesday that it has reached an agreement to buy 24 Bank of America (BAC) branches in northern Indiana and southwest Michigan. This deal would be the first foray into Michigan for the $9.4 billion-asset Old National, which lends in Indiana, Illinois and Kentucky.

Old National would acquire $778.8 million in deposits and $7.7 million in small-business loan balances. It expects the deal to close in the third quarter, pending approval by the Office of the Comptroller of the Currency.

Old National has agreed to pay a deposit premium of 2.94% for the branches, Chief Executive Bob Jones told American Banker. He called it "a very fair premium when considering the market in the Midwest and the quality of the markets we're moving into. …

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