Lafayette Savings Bank OKs Old National MergerPosted: Updated:
Lafayette-based LSB Financial Corp. shareholders have approved a merger with Old National Bancorp (Nasdaq: ONB). The deal is valued at $67 million and is expected to be complete in November. September 3, 2014
LAFAYETTE, Ind. - LSB Financial Corp. (the "Company"), the parent company of Lafayette Savings Bank, FSB, announced that at its special meeting of shareholders held today, the shareholders of the Company approved the Agreement and Plan of Merger between the Company and Old National Bancorp (NASDAQ: ONB) pursuant to which the Company will merge with and into Old National Bancorp. The merger is expected to close on November 1, 2014, subject to the satisfaction of the closing conditions contained in the merger agreement.
As previously announced, under the terms of the Agreement and Plan of Merger with Old National Bancorp, shareholders of LSB Financial will receive 2.269 shares of Old National common stock and $10.63 in cash (fixed) for each share of LSB Financial common stock. The exchange ratio is subject to adjustment (calculated prior to closing) in the event stockholders' equity of LSB Financial is below $40 million. The Agreement and Plan of Merger also provides that Lafayette Savings Bank will be merged into Old National Bank, Old National Bancorp's national bank subsidiary.
The Company also announced that it will pay a quarterly dividend of $0.09 per share to shareholders of record as of the close of business on September 15, 2014 with a payment date of September 29, 2014.
The closing price of LSB Financial common stock on September 2, 2014 was $40.67 per share as reported by the Nasdaq Global Market.
About LSB Financial Corp.
LSB Financial Corp. owns the largest bank headquartered in Lafayette, Indiana. Lafayette Savings Bank owns five banking centers in Tippecanoe County. It is a community-focused organization with a legacy of service that dates back to 1869.
Source: LSB Financial Corp.