Old National to acquire Michigan bank

Evansville, Ind.-based Old National Bancorp has agreed to acquire Founders Financial Corporation, Grand Rapids, Mich., for $88.2 million in a cash and stock transaction..The $466 million Founders has $355 million in loans and $378 million in deposits. Founders' four branches in the Grand Rapids area would be the first offices in area for the $10.4 billion Old National..The merger is expected to close in the first half of next year, pending approval by Founders' shareholders and regulators..The acquisition is the third Old National has announced this year. The company just received regulatory approval for its merger with the $919 million United Bancorp, Ann Arbor, Mich., which is set to close tomorrow. In June, Old National announced that it will acquire the $366 million LSB Financial, Lafayette, Ind. That deal is expected to close in the fourth quarter..At the time of its September 2013 acquisition of Tower Financial, Fort Wayne, Ind., Old National said its goal was to grow to $12 billion in assets. Buying Founders would put the company just past that benchmark..Including United's branches and deposits, Old National Bank will have 36 branches and $1.6 billion of deposits in Michigan.."This acquisition affirms Old National Bank's commitment to Southwestern Michigan by providing us with a strong and welcome presence in the state's second largest city," said Bob Jones, Old National president and CEO.."As a community-focused bank, we felt it was essential to choose a partner that not only shares our focus on highly personalized client service, but also our commitment to community engagement," said Lori Beard, Founders president and CEO. "We have found such a partner in Old National, and we look forward to enhancing our commitment to the Grand Rapids market through the strength of this new combination.".Old National was advised by Sandler O'Neill + Partners L.P. and the law firm of Krieg DeVault LLP. Founders was advised by Donnelly Penman & Partners and the law firm of Warner Norcross & Judd LLP.