Mergers & Acquisitions

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Deal Overview

Buyer:
Old National Bancorp
Actual Acquirer:
Old National Bank
Target:
United Bancorp, Inc.
Deal Type:
Bank & Thrift Company
Agreement Date:
1/7/2014
Announcement Date:
1/8/2014
Announced Deal Value ($ M):
171.96
Status:
Completed
Completion Date:
7/31/2014
Announced Deal Value Per Share ($ )
13.24

Consideration Breakout
Cash ($M) 34.2
Common Stock ($M) 122.8
Common Stock Issued 9,100,000

Deal Pricing Ratios

Announcement Completion
Price / Book (%) 204.9 183.4
Price / Tangible Book (%) 204.9 183.4
Price / Earnings (x) 22.1 19.7
Price / Deposits (%) 21.75 19.50
Price / Assets (%) 19.13 17.20
Tangible Book Premium/ Deposits (%) 12.15 9.97
Deal Terms
Description of Consideration

Old National Bancorp paid $2.66 in cash and exchanged 0.70 shares of its common stock for each of the outstanding share of United Bancorp Inc. Old National Bancorp will enter Washtenaw County, Mich., with five branches to be ranked seventh with a 4.82% share of approximately $6.90 billion in total market deposits, will enter Monroe County, Mich., with two branches to be ranked sixth with a 3.16% share of approximately $1.78 billion in total market deposits, will enter Livingston County, Mich., with one branch to be ranked No. 14 with a 0.70% share of approximately $2.17 billion in total market deposits and will expand in Lenawee County, Mich., by 10 branches to be ranked first with a 44.75% share of approximately $991.56 million in total market deposits.

Accounting Method Acquisition
In-State Transaction? No
Merger of Equals? No
Geographic Expansion? Partial Overlap
Goodwill Generated ($ 000) 86,852
Estimated Cost Savings (%) 32.00
Estimated Cost Savings ($ 000) 12,106
Est. Restructuring Charges ($ 000) 14,100
Maximum Termination Fee ($ 000) 6,000
Minimum Termination Fee ($ 000) 0
Exchange Ratio (Common For Common) 0.700000
Exchange Ratio (Common For Preferred) NA
Exchange Ratio (Preferred For Common) NA
Exchange Ratio (Preferred For Preferred) NA
Lockup Agreement No
Strike Price ($ ) NA
% of Shares Outstanding NA
Shares Under Option NA
Core Deposit Intangibles ($ 000) 5,900
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes Raymond James & Assoc. Inc.
Seller Yes Sandler O'Neill & Partners LP
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Krieg DeVault LLP
Seller Yes Warner Norcross & Judd LLP