Indiana Bank Buying Terre Haute-based Insurance Agency

Old National Bancorp, Evansville, IN, says it has signed a share exchange agreement with the shareholders of Sycamore Agency, under which Sycamore will become a part of Old National.

Terre Haute, IN-based Sycamore Agency is privately owned and focuses on commercial property and casualty business. It also provides personal and group A&H coverages to its clients. Sycamore markets its products primarily in Indiana and Illinois.

Founded in 1932, the agency has grown steadily over the years and in 1998, it sold policies with annual premiums of $27.5 million. Donald Scott, president and CEO, and Douglas Grim, secretary/ treasurer of the agency, will both continue in their roles following the acquisition. Mr. Scott will also serve in a senior management position with Old National managing its overall insurance operations.

Old National Chairman and CEO, Jim Risinger, noted, ``We have been looking for a high performing insurance agency operation for some time to supplement our existing operation here in Evansville. We know that we have found such an operation in Sycamore and are very excited about both the business and the management talent they will bring to our insurance operation.''

Old National said it believes that "risk management and insurance services are a natural adjunct" to its large commercial banking business.

Under the agreement, which is expected to close by December 31, 1999, Sycamore will continue to be headquartered in Terre Haute and will operate as a subsidiary of Orange County Bank, a state-chartered subsidiary of Old National Bancorp, located in Paoli, Indiana. Terms of the agreement were not disclosed.