UB&T, Old National Bank announce merger
Sometime this summer, branch offices of United Bank & Trust will become Old National Bank branches.
UB&T’s parent company, Ann Arbor-based United Bancorp, on Wednesday announced it is merging with Old National Bancorp.
The deal between United and Evansville, Ind.-based Old National is worth about $13.17 per share of United stock, or approximately $173.1 million, based on the closing price of Old National’s stock on Monday, according to a news release from the companies. Shareholders of United will receive 0.7 shares of Old National common stock and $2.66 in cash for each share of United stock.
The merger agreement was unanimously approved by the boards of both companies, according to the news release. It still needs to be approved by regulators and shareholders.
Both companies also announced their intentions to collectively donate an additional $20,000 to United Way organizations in United Bancorp’s market.
In Lenawee County, UB&T has three offices in Adrian, two in Tecumseh and one each in Blissfield, Clinton, Hudson, Manitou Beach and Morenci. It also has branches in Monroe, Washtenaw and Livingston counties.
UB&T traces its history back to 1893 when Lilley State Bank and Tecumseh State Savings Bank were chartered in Tecumseh. The two merged in 1931, forming United Savings Bank. United Bancorp was created in 1986, and the bank became United Bank & Trust in 1992 when it acquired Thompson Saving Bank, according to UB&T’s website.
Old National was founded in 1834 in Evansville. It has a branch on South Main Street in Adrian and branches in Brooklyn and Jackson as well as offices in Indiana, Kentucky, Illinois and southwestern Michigan.
Bob Jones, Old National president and CEO, said the partnership will introduce Old National to the Ann Arbor market. In a telephone interview Wednesday, Jones said UB&T account holders should not be affected by the change and no branch closings or employee layoffs are expected.
“Not in your market,” Jones said. “(The local management team) will be in charge, and we look forward to continuing their hard work and commitment to their customers.”
Joe Williams will continue as president of the Lenawee and Monroe markets. Todd Clark, UB&T president, will become regional president for Old National.
Jones and Clark said they were thrilled with the partnership.
“Our cultures, core values, strategies and ‘Solutions Together’ approaches align very well and we are both committed to every community we serve,” Clark said in the news release. “We are convinced this partnership will greatly benefit our shareholders, co-workers, clients and communities over the long run and look forward to joining the tremendous team of dedicated professionals at Old National.”
The partnership will double Old National’s Michigan presence to 36 total branches. United reports nearly $919 million in total assets, an additional $869 million in wealth management, and a $963 million loan servicing portfolio. Old National reports $9.7 billion in assets. It is the largest financial holding company headquartered in Indiana and the fourth-largest deposit holder in Indiana.
The news release said the transaction is expected to close late in the second quarter of 2014.
No date has been set for the vote by United shareholders, Jones said.