LAFAYETTE, Ind. (WLFI) — Lafayette Savings Bank announced a joint merger Wednesday with Evansville-based Old National Bancorp.
Old National and Lafayette-based LSB Financial entered a joint agreement under which Old National will acquire LSB Financial through a stock and cash merger worth $66.7 million.
Officials said with $366 million in total assets and just over $312 million in deposits, LSB Financial is a savings and loan holding company with Lafayette Savings Bank as its wholly-owned subsidiary. LSB is the largest bank headquartered in Lafayette and operates five full-service banking centers in Tippecanoe County.
Old National was founded in Evansville in 1834, with $9.5 billion in assets and 166 branches. It is the largest financial services holding company headquartered in Indiana and the fourth largest deposit holder in the Hoosier state, according to officials. Locally, Old National has three banking centers with two in Lafayette and one in West Lafayette.
Old National President and CEO Bob Jones told News 18 in a release this partnership continues the company’s path of expansion by more than doubling their presence in the Lafayette market.
“It also marks the union of two like-minded banks with outstanding legacies of client service and community engagement,” Jones continued. “By acquiring the community bank in Tippecanoe County, Old National is reinforcing our standing as the Indiana bank and one of the leading community focused banks in all of our markets.”
LSB Financial President and CEO Randolph F. Williams added that Old National is an established, well-managed company that is truly Indiana’s bank. He said they care about the people they serve.Williams said he is looking forward to working with Bob and his team.
“This partnership is in the best interests of our shareholders who will become part of a larger and growing institution,” Williams said. “Our board believes that the best way to advance our long-standing commitment to the Lafayette community is to partner with a larger institution that has demonstrated commitment to our values, is respectful of our history, and has the ability to grow opportunities for our community, customers and employees.”
According to a press release received by News 18, the agreement is for $66.7 million.
“Under the terms of the merger agreement, which was unanimously approved by the boards of both companies, shareholders of LSB Financial will receive 2.269 shares of Old National common stock and $10.63 in cash (fixed) for each share of LSB Financial common stock. Based upon the June 3, 2014, closing price of $13.68 per share of Old National common stock, the transaction is valued at approximately $41.67 per share of LSB Financial common stock, or approximately $66.7 million.”
The transaction is expected to wrap up in mid-to-late fourth quarter of 2014. It remains subject to approval.