Indiana-based Old National Bancorp has agreed to acquire Minnesota-based KleinBank in a deal valued at around $433.8m.

Old National

Image: Old National Bank's Downtown Evansville riverfront headquarters. Photo: courtesy of Randella.

As per terms of the deal, Klein shareholders will secure 7.92 shares of Old National common stock for each share of common stock of Klein.

KleinBank CEO Doug Hile said: “We share a special commitment to exceptional service, local responsiveness and community leadership, and we are excited to take this commitment to the next level to the benefit of all.”

Based in Chaska, KleinBank provides personal banking and business banking services to the customers in twin cities area.

The bank offers personal banking services, including digital banking, accounts, cards, loans, mortgages and investment services.

Its business banking services include cash management, as well as digital banking, accounts, cards and loans.

With 18 full-service branches, the bank has $2bn worth assets, $1.1bn worth loans, $1.7bn worth deposits and $184m worth common shareholder’s equity, as of 31 March this year.

The deal will allow Old National Bank to strengthen its operations in twin cities market and become the fourth largest community bank headquartered within its five-state footprint.

Subject to customary closing conditions, the deal is expected to be completed in the fourth quarter of this year.

Old National chairman and CEO Bob Jones said: “We look forward to continuing the legacy of exceptional client service and strong community engagement that has defined KleinBank for more than 110 years and four generations.

“The addition of Klein’s powerful retail franchise, as evidenced by their low loan to deposit ratio of 64% and their outstanding business banking and fee-based teams, complement the already-excellent commercial team and strong performance that we have seen to date at our recently completed Anchor Bank partnership.”

With operations in Indiana, Kentucky, Michigan, Wisconsin and Minnesota, Old National Bank offers retail and commercial banking, wealth management, investments and brokerage services.