Evansville-based Old National Bancorp (Nasdaq: ONB) has agreed to acquire a Minnesota bank. The all-stock transaction for Klein Financial Inc. is currently valued at nearly $434 million. The deal, which has received the approval from the Old National and Klein boards of directors, is expected to close in the fourth quarter.
Old National says the acquisition will boost its asset total to approximately $20 billion. KleinBank’s total assets come in at $2 billion. It has 18 banking locations throughout the Minneapolis/St. Paul metropolitan area.
Old National Chief Executive Officer Bob Jones says "we are humbled by the confidence of the Klein family in choosing Old National as their partner. We look forward to continuing the legacy of exceptional client service and strong community engagement that has defined KleinBank for more than 110 years and four generations. The addition of Klein’s powerful retail franchise, as evidenced by their low loan to deposit ratio of 64% and their outstanding business banking and fee-based teams, complement the already-excellent commercial team and strong performance that we have seen to date at our recently completed Anchor Bank partnership. We believe the enhanced scale, product capability, and market coverage that this combination creates positions us exceptionally well in the Twin Cities – a market that remains economically vibrant with unique competitive dynamics that play into the strengths of our business model."
Terms of the acquisition include Klein shareholders receiving 7.92 shares of Old National stock for each of their Klein shares. The deal still requires regulatory and Klein shareholder approval.
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