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Old National buying Indiana Community for $79M

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Old National Bancorp. agreed to acquire Columbus-based Indiana Community Bancorp. for $79.2 million in stock, the companies announced Wednesday morning.

Evansville-based Old National will absorb the 20 branch locations Indiana Community operates, including three on the southern edge of Indianapolis. The company, which operates under the name Indiana Bank & Trust, has nearly $985 million in assets.

Indiana Community was hit last year by some sour Indianapolis real estate investments, which forced it to set aside $14.1 million for loan losses in its third quarter, compared with just $1.6 million in the same quarter the year before. The bank lost $5.8 million in the quarter.

Old National is the largest bank headquartered in Indiana, with $8.9 billion in assets and more than 180 branches. The acquisition of Indiana Community, which still requires the approval of shareholders and state and federal regulators, would help it broaden its geographic reach.

"It also allows Old National to expand our service area into a vibrant, growing region,” said Old National CEO Bob Jones in a prepared statement, “and enables Indiana Bank and Trust Co.'s loyal client base to continue doing business with a community-focused, Indiana-based financial institution with a very similar culture and values."

Indiana Community CEO John Keach said the merger with Old National would enhance the bank’s products and services, as well as rewarding shareholders.

The purchase price values Indiana Community at $22.80 per share—a 57 percent premium to the company’s closing price on Tuesday.

Indiana Community shares soared in Wednesday morning trading, rising by as much as 47 percent, to $21.34 apiece.

Old National stock fell 3.4 percent Wenesday morning, to $11.96 per share.

The banks said they expect the merger to close in the second quarter.

In 2008, Indiana Community had accepted $21.5 million in government funds through TARP, or the Troubled-Asset Relief Program, and issued an equivalent amount of preferred stock. Old National said it intends to redeem that preferred stock before completing its merger with Indiana Community.

 

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  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

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