Old National has a thing about Anchors.

The Evansville, Indiana-based Old National Bancorp is acquiring Anchor Bancorp, Inc. of St. Paul, Minnesota in a stock and cash merger, the deal announced Tuesday.

Old National acquired AnchorBank of Madison in 2016; the two Anchors were not affiliated.

The transaction is the first expansion of Old National into Minnesota, the firm said, and will make Old National the seventh-largest deposit holder in the Minneapolis/St. Paul market.

Under the terms of the agreement, Anchor Bank shareholders will get 1.35 shares of Old National common stock and $2.625 in cash for each share of common stock of Anchor held.

The transaction, subject to regulatory approval and the vote of Anchor shareholders, is expected to close early in the first quarter of 2018.

Anchor Bank has $2.1 billion in total assets, $1.6 billion in total loans, $1.7 billion in deposits and $164 in common shareholder equity.

The bank was founded in 1967 and has 18 branches, serving the Twin Cities as well as Mankato, Minnesota. It's one of the largest community banks headquartered in the Twin Cities.

Old National, founded in 1834, has $15 billion in total assets, and 188 locations, including 46 former AnchorBank locations in Wisconsin.

This article was originally published by the Wisconsin State Journal.