Old National Bank has signed a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC) to assume all of the deposits of Integra Bank, National Association (Integra), Evansville, Indiana.
As per the deal, Old National Bank will assume $1.5bn in deposits and purchase $1.2bn in loans of Integra.
Old National Bank will pay the FDIC a premium of 1% to assume all of the deposits of Integra.
In addition to assuming all of the deposits of the failed bank, Old National Bank agreed to purchase essentially all of the assets.
As of 31 March 2011, Integra had approximately $2.2bn in total assets and $1.9bn in total deposits.
Old National Bank will now operate a total of 52 former Integra banking centers in Southern Illinois, Southern Indiana and Western Kentucky with this acquisition.
The transaction is expected to be immediately accretive to Old National’s earnings per share, excluding
Sandler O’Neill + Partners and DD&F Consulting Group have acted as financial advisors for Old National on this transaction.