Old National Bancorp Buys Charter One’s Retail Bank Branches in Indiana

Old National Bancorp is the largest financial services holding company headquartered in Indiana and, with $7.6 billion in assets, announces the purchase of certain bank branches of Charter One.  Old National Bancorp today announced the execution of a purchase and assumption agreement to acquire the Indiana retail branch banking network of Citizens Financial Group, which consists of 65 Charter One branches.  As of September 30, 2008, the deposit liabilities to be assumed by Old National through this transaction had a balance of approximately $397.4 million, and the portfolio of loans being purchased by Old National consisted of roughly $15.9 million in outstandings.  This acquisition positions Old National Bank with the third largest branch network in the state of Indiana.

Under the terms of the agreement, Old National will pay Citizens Financial Group approximately $15.9 million in cash in consideration of the deposit premium.  Subject to regulatory approval, the transaction is anticipated to close in the first quarter of 2009.  The 65 branch locations are largely in the Indianapolis area, with additional locations in the Lafayette, Fort Wayne, Anderson, and Bloomington markets.  The majority of the branches are in-store locations at Kroger Co., Marsh Supermarket, Starbucks and Wal-Mart Stores.  This acquisition will position Old National with more than 180 bank branches throughout its franchise.

Headquartered in Evansville, Indiana, Old National Bancorp owns multiple financial services operations in Indiana, Illinois, and Kentucky. The company provides a comprehensive range of financial services including commercial and retail banking, trust, brokerage, correspondent banking, and insurance.

The company’s stock trades on The New York Stock Exchange under the symbol ONB.

Citizens Financial Group, Inc. is a $161 billion commercial bank holding company.  It is headquartered in Providence, Rhode Island., and, through its subsidiaries, has more than 1,600 branches, more than 3,500 ATMs and more than 24,000 employees.  Its two bank subsidiaries are RBS Citizens, N.A. and Citizens Bank of Pennsylvania.  They operate a 13-state branch network under the Citizens Bank brand in Connecticut, Delaware, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont, and the Charter One brand in Illinois, Indiana, Michigan and Ohio.  CFG has non-branch retail and commercial offices in about 40 states.  It is one of the 10 largest commercial banking companies in the United States ranked by assets and deposits. CFG is owned by RBS (The Royal Bank of Scotland Group plc).

This entry was posted on Wednesday, November 26th, 2008 at 8:28 pm and is filed under Money Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.