Aug. 27, 2014, 7:47 AM
Jun. 4, 2014, 8:59 AM
- Another community bank merger has Indiana's Old National Bancorp (ONB) inking a $66.7M deal to buy LSB Financial (LSBI), the holding company for Lafayette Savings Bank.
- LSB owners will receive 2.269 shares of ONB plus $10.63 in cash for each share of LSBI they own, putting the current value of the deal at $41.67 per share vs. last night's $28.30 close. The transaction is expected to close in Q4.
- ONB expects the deal to be immediately accretive to 2015 earnings by $7.5M, or $0.03 per share.
Mar. 4, 2014, 10:47 AM
- The fast pace of smaller bank roll-ups looks set to take a pause as acquirers shy away from higher prices and instead focus on integrating recent purchases. Deal prices this year have climbed to an average of 136.8% of TBV vs. 128.7% in 2013 and 120.3% in 2012, according to SNL Financial.
- Of course, higher stock prices make it easier to pay, with SNL's Bank & Thrift Index now trading near 170% of TBV from 145% about a year earlier.
- Speaking at a recent conference, BankUnited (BKU +1.9%)CEO John Kanas says a strong currency is of little use if the target bank can't grow its business at the same multiple as his bank. Further, any buyer should be prepared to spend a year distracted with regulators.
- Still on the hunt, Home BancShares (HOMB +3.3%) CEO Randy Sims takes note of frothy seller expectations, noting a number of deals where the seller has baked in 50% growth into its asking price.
- Hancock Holdings (HBHC +3.1%) chief Carl Chaney agrees prices are rising, but so too is the quality of the books he's looking at.
- Trustmark (TRMK +3.7%) CEO Gerard Host says growth is necessary now that the bank's passed $10B in assets and faces a whole host of new regulations and costs. "We're going to have to pay to do the deals we want to do ... It's not just about money."
- Old National Bancorp (ONB +2.5%) CEO Bob Jones says he spends nearly 20% of his time talking to CEOs and boards of potential targets and these things take time. The recently closed purchase of Tower Financial, he says, was 10 years in the making.
- Also presenting: BXS, FFCH, UBSH, PB
Jan. 8, 2014, 8:53 AM
- Shareholders of United Bancorp (UBMI) will receive 0.70 shares of Old National (ONB) common stock and $2.66 in cash for each share of United Bancorp stock. Based on Monday's $15.02 close for Old National, the deal is worth $13.17 to United shareholders vs. the current price of $7.50 - a 74% premium. Community bank rollup fans take note.
Jan. 25, 2012, 11:06 AM
Shares of Indiana Community Bancorp (INCB +44.5%) soar after agreeing to be bought by Old National Bancorp (ONB -3.4%) in a $79M all-stock merger. Separately, INCB also reported Q4 earnings this morning, easily beating analysts' expectations as net charge-offs and loan losses dropped.| Jan. 25, 2012, 11:06 AM