The James L. Will Insurance Agency has 22 employees and $2.5 million in annual revenues. The agency focuses on property-casualty commercial and personal lines insurance.

Old National said the acquisition would double ONB Insurance Group's size in Evansville, where the bank is based, and complement Old National's expertise in the growing commercial and personal insurance business.

While other banks are abandoning the idea of joining insurance services with their institutions, ONB sees it as a growing opportunity, said Chris Melton, chairman, president and chief executive officer of Old National Signature Group, the non-bank function of the financial institution.

"We want to strengthen the non-interest bearing part of our business, and insurance fits our corporate strategy," noted Mr. Melton.

While other banks purchased small independent agencies and expected to then incorporate them into the banking services, he said ONB decided that to be successful it needed to purchase insurance brokers of scale and keep them independent of the banking business.

"The strategy is that we let the insurance people run the business, I think that is the key part of our strategy," he noted.

"You have to make a commitment to be successful," observed Mr. Melton. "Others thought they could buy one agency and that they would be successful. That was not our strategy. We are in insurance because we think it is a line of business that can diversify us and that can stand on its own."

The James L. Will Insurance Agency will maintain its name for an unspecified period of time, Old National said, and remain at its current location.

ONB Insurance comprises more than $400 million in premiums.

Old National Bancorp is a $9.6 billion financial holding company employing more than 3,000 employees throughout the states of Indiana, Illinois, Ohio, Kentucky, Tennessee and Missouri.

Mr. Melton said that the ONB aims to see organic growth in the insurance services of between 10-to-12 percent a year, and double in size within the next three-to-five years. It also expects to continue its acquisition strategy.