Boston, MA 06/04/2014 (wallstreetpr) – To enhance customer experience, expand location presence and generate bigger profits Old National Bancorp (NASDAQ:ONB) is putting its money to work for it in LSB Financial Corp. (NASDAQ:LSBI). The company is anticipating even more benefits to its side through the deal.
The two financial services providers have entered a definitive agreement in which Old National will acquire LSB Financial in a transaction that involves both cash and stock. Officially, the agreement states that LSB Financial will merge into Old National.
The deal will have a significant boost in the assets of Old National. LSB Financial (NASDAQ:LSBI) has $366 million in total assets and more than $312 million in deposits. The business operates as a savings and loan holding company with Lafayette Savings Bank being its wholly-owned subsidiary. Lafayette Savings Bank is the largest bank operating in Lafayette. As of now, the bank operates five banking centers in Tippecanoe County.
A good name is as good as riches
In view of the above, Old National expects its tie-up with LSB Financial to double its presence in Lafayette market, without mentioning the fact that the deal will bring together two like-minded financial institutions with outstanding client and community engagement legacies.
According to Old National CEO Bob Jones, the bank looks forward to maintaining its leadership as community-focused bank in all the markets it serves.
Old National Bancorp (NASDAQ:ONB) operates 166 branches and boasts as the largest bank holding company with headquarters in Indiana. The company had $9.5 billion in assets as of March 31, 2014.
In addition to building a good reputation for itself in the financial services business, the bank’s business is business. That means its investment thesis has nothing in between expect creating value for the shareholders.
Closing the transaction
The banks agreed that shareholders of LSB Financial (NASDAQ:LSBI) will receive $10.63 per share in cash and 2.269 shares of Old National’s common stock shares. That brings the deal to about $67 million. However, adjustments are expected in the value because of the equity transaction involved.
Old National Bancorp (NASDAQ:ONB) expects the transaction to close in 4Q2014. However, the closing of the deal is also subject to approval of LSB Financial shareholders and federal regulators.
