A merger between Evansville, Ill.-based Old National Bancorp and Ann Arbor-based United Bancorp Inc. will double Old National’s presence in Michigan, the companies announced Wednesday.
“We are very excited about the long-lasting synergies that will be generated through this partnership between our very client-centric organizations,” says Todd Clark, president of United. “We are convinced this partnership will greatly benefit our shareholders, co-workers, clients, and communities over the long run and look forward to joining the tremendous team of dedicated professionals at Old National.”
United — which has $919 million in total assets, an additional $869 million in wealth management assets under management, and a $963 million loan servicing portfolio —operates 18 full-service banking centers throughout Washtenaw, Livingston, Lenawee, and Monroe counties. Under the deal, United branches will be renamed as Old National. Going forward, the partnership will double Old National’s Michigan presence to 36 branches.
The deal is valued at approximately $173.1 million. United shareholders will receive 0.7 shares of Old National common stock and $2.66 for each share of United stock.
As part of the partnership, the two companies will donate a total of $20,000 to United Way organizations throughout United’s markets.
Founded in 1834, Old National has $9.7 billion in assets and nearly 170 branches in Indiana, Illinois, and Kentucky.