FoundersTrust.JPG
Founded in 1991, Founders Bank and Trust operates four branches in West Michigan.
(Jim Harger | Mlive Media Group)
GRAND RAPIDS, MI – Founders Bank and Trust is being acquired by Old National Bank and Trust, an expanding Evansville, Ind.-based bank that also has moved into the Ann Arbor and Kalamazoo market this year.
"This acquisition affirms Old National Bank's commitment to Southwestern Michigan by providing us with a strong and welcome presence in the state's second largest city," said Old National President and CEO Bob Jones in a news release announcing the acquisition on Monday, July 28.
"Like Founders Bank and Trust, Old National Bank is focused on exceeding client expectations and strengthening the communities we serve. We look forward to continuing the legacy of service to both clients and community that has become the Founders trademark," Jones said.
Old National Bank President and CEO Bob Jones toured Founders Bank and Trust branches with Founders CEO and President Laurie Beard on Monday, July 28.
Laurie Beard, president and CEO of Founders Bank, said she is confident Old National will carry on the values of the bank she has led since 2001. She will continue with Old National as a regional president after the deal is completed sometime in the first half of 2015.
“We found Old National has a culture that’s very aligned with ours,” said Beard after touring all of Founders’ four branches on Monday to introduce Jones to Founders’ 105 employees.
Old National, the largest bank based in Indiana with assets of nearly $10.4 billion, is buying Founders for an estimated $88.2 million. Founders’ 275 shareholders will get 3.25 shares of Old National stock and $38 in cash for each one of their shares.
The deal also calls for Old National to donate $15,000 to the Grand Rapids Community Foundation’s Challenge Scholars program.
With $446 million in total assets and $378 million in deposits, Founders was created in 1991 and has posted 78 consecutive profitable quarters “before, during and after” the crisis that struck the banking industry, Beard said.
That made Founders an attractive candidate when Old National approached them about becoming a “partner,” Beard said. The acquisition will give Founders access to larger lending limits and a broader array of banking products, she said.
“Old is coming back to Kent County,” said Jones, smiling as he referred to Old Kent Bank, the former name of the area’s largest banking entity, Fifth Third Bancorp.
In Kent County, Founders was ranked 9th last year in deposits with a market share of 3.04 percent, according to the Federal Deposit Insurance Corp.
With the Founders announcement, Old National now has three pending acquisitions in Michigan. It plans to close on its $173 million acquisition of Ann Arbor-based United Bancorp. on Thursday, July 30.
Old National also is acquiring 24 Bank of America branches in southwest Michigan and northern Indiana. The bank also has pending acquisitions of LSB Financial Corp. in Lafayette, Ind. and Tower Financial Corp. of Fort Wayne, Ind.
Grand Rapids, Ann Arbor and its new Kalamazoo-based Southwest Michigan operation will be run independently by its regional presidents, Jones said. “Our job is to do nothing but make Laurie’s job easier,” he said of Old National’s approach.
Founded in 1834, Old National has expanded from its base in southern Indiana and has operations in Western Kentucky, Louisville, Ky., and southern Illinois.
Jim Harger covers business for MLive/Grand Rapids Press. Email him at jharger@mlive.com or follow him on Twitter or Facebook or Google+.