EVANSVILLE - Evansville-based Old National Bancorp (Nasdaq: ONB) has announced plans to acquire Minnesota-based Anchor Bancorp Inc. Old National says the deal, currently valued at more than $300 million, is part of the bank's strategy to expand its franchise in "demographically attractive and economically vibrant" markets. The deal is not related to Old National's acquisition of Anchor BanCorp Wisconsin Inc., which closed in 2016.

The deal has received unanimous approval from the boards of directors for both companies and still requires approval from Anchor shareholders as well as the customary regulatory approval. The acquisition agreement states Anchor shareholders will receive 1.35 shares of Old National common stock and $2.625 in cash for each share of Anchor common stock they own.

The acquisition is expected to close in the first quarter of 2018. When complete, Old National says it will be the seventh largest deposit holder in the Twin Cities market. 

"This partnership, which marks Old National’s entry into Minnesota, is a natural extension of our franchise," said Bob Jones, chief executive officer of Old National. "Not only does it position us in strong, vibrant markets with proven growth potential, it also represents a perfect cultural fit and an opportunity to continue the strong legacy of service that has distinguished Anchor Bank for 50 years."

Anchor Bancorp, which has $2.1 billion in total assets, is the parent of Anchor Bank, which has 18 branches in the Twin Cities area.