Old National Bancorp Buys WFI Unit - Analyst Blog
December 02 2013 - 12:00PM
Zacks
Old National Insurance, which is a
wholly owned subsidiary of Old National Bancorp.
(ONB), acquired the insurance accounts serviced by the Evansville
branch of Wells Fargo Insurance (WFI) – a division of Wells
Fargo & Company (WFC) – on Dec 1. The Evansville
branch of WFI services mainly commercial property and casualty
insurance accounts.
Though the financial terms of the deal were not disclosed, both WFI
sales executives and the one account representative joined Old
National Insurance team. Notably, the transaction will enable Old
National Bancorp to utilize the expertise of WFI team.
Old National Insurance has been expanding over the past several
months. In Sep 2013, the company announced a deal to acquire
Tower Financial Corporation (TOFC) in a
cash-cum-stock deal worth nearly $108 million. The transaction,
still subject to approval from regulatory authorities and Tower
Financial Corporation shareholders, is expected to close in the
first quarter of 2014.
In July, Old National Bancorp completed the integration of 24
branches of Bank of America Corporation (BAC)
located in Northern Indiana and Southwestern Michigan.
Apart from its inorganic growth strategy, Old National Bancorp has
a steady share repurchase program in place. In the first nine
months of 2013, the company repurchased shares worth $11.1 million.
With total cash and cash equivalents of nearly $247.4 million as of
Sep 30, 2013, the company is expected to further enhance
shareholders’ value going forward.
Old National Bancorp’s consistent capital deployment activities
make it an attractive option for yield-seeking investors. Further,
we expect the company’s organic and inorganic growth strategies to
increase top-line growth.
Currently, Old National Bancorp carries a Zacks Rank #3 (Hold).
BANK OF AMER CP (BAC): Free Stock Analysis Report
OLD NATL BCP (ONB): Free Stock Analysis Report
TOWER FINANCIAL (TOFC): Free Stock Analysis Report
WELLS FARGO-NEW (WFC): Free Stock Analysis Report
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