Updated 8:32 AM ET July 30, 1999
Merger Highlights: -- Logical Extension of Old National's Strong Franchise
Current quotes (delayed 20 mins.) OLDB 30 1/16 1/16 (0.21%)
EVANSVILLE, Ind. (BUSINESS WIRE) - -- Important Addition to Growing Trust & Investment Management
Business
Accretive to EPS with Conservative Cost Saving Assumptions
Low Risk Integration - Represents only 11% of Old National's
Assets & Earnings
Old National Bancorp (NASDAQ:OLDB) announced today that a definitive agreement to merge has been signed with Muncie, Indiana-based ANB Corporation, the holding company of American National Bank and Trust Company of Muncie, American National Trust and Investment Management Company, Peoples Loan & Trust Bank of Winchester, and Farmers State Bank of Union City, Ohio, subject to shareholder and regulatory approval.
The ANB Corporation's board of directors has approved the all-stock transaction that is expected to be consummated by early 2000. The merger plan calls for ANB Corporation shareholders to receive a tax-free exchange of 1.25 shares of Old National for each outstanding share of ANB now held. Based on present values, the transaction value will approximate $212.4 million.
Old National plans to account for the merger as a pooling of interests and expects it to be accretive to 2000 earnings. EPS estimates are based on the assumption that cost savings in the range of 20% of projected 2000 ANB operating expenses will be achieved in integrating the operations. In connection with the transaction, Old National anticipates that it will take a one-time after-tax charge to earnings in 1999 of approximately $7 million. There are factors that could cause the actual results to differ from such estimates, such as changes in economic conditions and other factors that would be indicated on a Form 8-K to be filed with the Securities and Exchange Commission.
ANB Corporation President and CEO, James Schrecongost, says his organization is "excited about the potential of this partnership. Our organizations share the same strong values and community banking philosophy - ANB is a natural extension of Old National's market and it's a great fit! I have always had extremely high regard for Old National and its CEO, Jim Risinger. In addition to our combined banking organization, we are very pleased that Old National places such an important emphasis on trust and asset management. Including our $1.7 billion in assets, the combined trust operations will total approximately $5 billion, thus becoming one of the largest Indiana-based trust and asset management businesses."
Old National Chairman and CEO, Jim Risinger, says, "We expect ANB to join us without a hitch, just as 38 other financial institutions have done since we embarked on the merger trail in 1985. ANB has excellent management, a good record of market growth, effective expense control and a strong customer orientation. All are hallmarks of our banks in the Old National system. The offices of ANB will be fine members of our still growing family of banking centers and Muncie will soon be headquarters to Old National's Eastern Indiana Region."
Old National announced record first half earnings of $41.3 million on July 22nd, an increase over 1998's first half of 14.5%. In addition, return on equity surpassed 16% for the first time in the company's recent history. Old National Chief Financial Officer, John S. Poelker, observed that "Old National has created very strong asset growth and earnings momentum over the last six quarters and we see this transaction as an important step in our strategy. The pricing of the transaction is consistent with our financial objectives and we anticipate no problems in integrating the ANB operation into our 'One Bank' charter consolidation program. We are particularly enthused about the strong trust and investment management operation of ANB and its presence in the important Indianapolis and Fort Wayne markets."
The addition of ANB's $784 million in assets will bring Old National's total assets to approximately $7.7 billion. ANB's 24 banking offices will increase Old National's number of banking offices to 143 and ANB's 16 ATMs will bring Old National's total to 190 throughout Indiana, Illinois and Kentucky.
Old National was advised by Keefe, Bruyette and Woods. Sandler O'Neill & Partners acted as advisor to ANB Corporation.
Contact: Old National Bancorp, Evansville John Poelker, 812/464-1266 or Ann Burnworth, 812/464-1468 oldnational.com
Archive: Fri Jul 30 Thu 29 Wed 28 Tue 27 Mon 26 Sat 24 Fri 23
|
