Evansville, Ind. and St. Paul, Minn.
- Headquartered in St. Paul, Anchor Bank, N.A. is one of Minnesota’s largest community banks serving the Twin Cities and Mankato markets
- As of June 30, 2017, Anchor Bank had $2.1 billion in total assets, $1.6 billion in loans, $1.7 billion in deposits, $164 million in common shareholders’ equity and 18 bank locations
- Anticipated closing in early 1st quarter 2018
(August 8, 2017) – Evansville, Indiana-based Old National Bancorp (NASDAQ: ONB) (“Old National”) and St. Paul, Minnesota-based Anchor Bancorp, Inc., (“Anchor”) jointly announced today the execution of a definitive agreement under which Old National will acquire Anchor through a stock and cash merger. When completed, this transaction will position Old National as the seventh largest deposit holder in the Twin Cities market.
With $2.1 billion in total assets, $1.6 billion in total loans, $1.7 billion in deposits, and $164 million in common shareholder’s equity as of June 30, 2017, Anchor is a bank holding company with Anchor Bank, N.A. (“Anchor Bank”) as its wholly-owned subsidiary. Founded in 1967 and with 18 total branches, Anchor Bank is one of the largest community banks headquartered in the Twin Cities, and also serves Mankato, Minnesota. Anchor Bank has no affiliation with the former AnchorBank in Madison, Wisconsin, which Old National acquired in 2016.
This transaction is a continuation of Old National’s strategy to focus on the expansion of its franchise in demographically attractive and economically vibrant growth markets with favorable competitive dynamics.
“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.”
Founded in Evansville, Indiana in 1834, with $15 billion in total assets and 188 banking centers as of June 30, 2017, Old National, the parent company of Old National Bank, is the largest financial services holding company headquartered in Indiana.
Under the 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 they hold. Based on Old National’s closing share price on August 7, 2017, of $16.45, this represents a total transaction value of approximately $303.2 million. The transaction value is likely to change due to fluctuations in the price of Old National common stock and is also subject to adjustment under certain 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 early in first quarter 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.
Anchor-ONB News release Aug 2017