Evansville, Ind.-based Old National Bank is acquiring Nashville-based bank holding company CapStar Financial Holdings in a $344 million all-stock acquisition.
The buy increases Old National Tennessee’s size to $3.3 billion in assets and $2.8 billion in deposits. The $49 billion bank will have a top-10 deposit market share in Nashville and Asheville, N.C.
The acquisition adds 23 branches to Old National Bank’s footprint and is expected to close in the second quarter of 2024. Old National entered the Tennessee market last year by opening a Nashville-based high-net-worth division. The bank has since added a Nashville-based commercial banking and lending team.
“This partnership with CapStar — one of the most highly respected and successful community banks in Tennessee — is a tremendous cultural fit and a natural extension of our growth strategy,” said Old National CEO Jim Ryan.
Under the merger agreement, each share of CapStar common stock will be converted into the right to receive 1.155 shares of Old National common stock.
New York City-based Keefe, Bruyette & Woods served as financial advisor to Old National Bank while Detroit, Mich.-based Dykema Gossett, PLLC served as legal adviser. New York City-based Morgan Stanley & Co. LLC served as financial adviser and New York City-based Wachtell, Lipton, Rosen & Katz acted as legal adviser to CapStar.