Old National announces Wisconsin acquisition

Evansville-based Old National Bancorp is acquiring Anchor BanCorp Wisconsin Inc. through a stock and cash merger.

Anchor, a savings and loan holding company with AnchorBank, operates 46 banking centers, including 32 in the Madison, Milwaukee and Fox Valley area in Wisconsin. The company has $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.

Founded in Evansville in 1834, Old National Bancorp, the parent company of Old National Bank, is the largest financial services holding company headquartered in Indiana. The company has $11.9 billion in total assets and 160 banking centers as of Sept. 30, including five in Columbus.

Under 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.

Based on Old National’s 10-day average closing share price through Jan. 8 of $13.34, this represents a transaction value of about $461 million.

The merger agreement has been unanimously approved by the board of directors of Old National and Anchor, but remains subject to regulatory approval and a vote of Anchor shareholders.

The transaction is anticipated to close in the second quarter of this year.