Stephen Rosenman
Long/short equity, deep value, special situations

Old National Bank: Don't Buy This Shopaholic Bank

It's tough to break old habits. Old National Bank (NYSE:ONB) has been overpaying for acquisitions for decades - and unfortunately, can't seem to stop. I thought Old National was being extravagant when it announced its 1.7X TBV Tower Financial (NASDAQ:TOFC) acquisition back in September (46% premium). But I was flabbergasted by its recent bid for United Bank (OTCQB:UBMI), an average Michigan bank, at a high 2.2X TBV with a colossal 70% premium. This is by no means the first time that Old National emptied out its wallet. Before the Great Recession, Old National routinely paid 2.3X to 4.4X TBV for its takeovers. While I generally like acquisitive banks, I don't want Old National spending...

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