United Bancorp, the parent company of United Bank & Trust (UB&T) announced a merger with Old National Bancorp. This summer, UB&T branch offices will become branches of Old National, according to Len Connect.
The transaction between the two banks is worth around $13.17 for every share of United stock. This values the deal at an estimated $173.1 million, according to a press release from the companies. Under the terms of the deal, United shareholders will gain 0.7 shares of Old National common stock. In addition, they will also receive $2.66 in cash for every share of United stock, the report detailed.
Both firms have also announced their plans to collectively donate a further $20,000 to United Way organizations in the market of United Bancorp, the report added.
According to Old National president Bob Jones, the partnership will lead Old National to the market in Ann Arbor. He also said account holders of UB&T should not be affected by the change. There will also be no employee layoffs and branch closings to be expected, the report said.
Todd Clark, president of UB&T, will become Old National's regional president, Len Connect reported.
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