Effective November 1, 2018, Old National completed the acquisition of Minnesota-based Klein through a 100% stock merger. Klein was a bank holding company with KleinBank as its wholly-owned subsidiary. Founded in 1907 and headquartered in Chaska, Minnesota with 18 full-service branches, KleinBank was the largest family-owned community bank serving the Twin Cities and its western communities. Old National achieved cost savings by integrating the two companies and combining accounting, data processing, retail and lending support, and other administrative functions, which enabled Old National to achieve economies of scale in these areas.

Pursuant to the merger agreement, each holder of Klein common stock received 7.92 shares of Old National Common Stock per share of Klein common stock such holder owned. The total fair value of consideration for Klein was $406.5 million, consisting of 22.8 million shares of Old National Common Stock valued at $406.5 million. Through December 31, 2019, transaction and integration costs of $20.3 million associated with this acquisition have been expensed. Old National does not anticipate additional expenses related to this acquisition.

As of September 30, 2019, Old National finalized its valuation of all assets acquired and liabilities assumed, resulting in immaterial changes to acquisition accounting adjustments. A summary of the fair values of the acquired assets, liabilities assumed, and resulting goodwill follows (in thousands):

Cash and cash equivalents	$	60,759
Investment securities		697,951
FHLB/Federal Reserve Bank stock		2,637
Loans held for sale		3,371
Loans		1,049,073
Premises and equipment		32,408
Accrued interest receivable		7,896
Company-owned life insurance		36,380
Net deferred tax assets		6,746
Other real estate owned		954
Other assets		10,299
Deposits		(1,713,086	)
Securities sold under agreements to repurchase		(19,481	)
Accrued expenses and other liabilities		(17,506	)
Net tangible assets acquired		158,401
Definite-lived intangible assets acquired		39,017
Loan servicing rights		285
Goodwill		208,771
Total consideration	$	406,474

The estimated fair value of the core deposit intangible was $39.0 million and is being amortized over an estimated useful life of 12 years.

(in thousands)

Fair Value

of Acquired Loans

at Acquisition Date

Gross Contractual

Amounts Receivable

at Acquisition Date

Best Estimate at

Acquisition Date of

Contractual Cash

Flows Not Expected

to be Collected

Acquired receivables subject

to ASC 310-30

11,663

18,568

4,521

Acquired receivables not subject

to ASC 310-30

1,037,410

1,252,954

76,534

On October 26, 2018, Old National divested ten branches in Wisconsin to Marine Credit Union of La Crosse, Wisconsin. At closing, the purchasers assumed $230.6 million in deposits and no loans. Old National recorded a net pre-tax gain of $14.0 million in the fourth quarter of 2018, which included a deposit premium of $15.0 million, goodwill allocation of $0.6 million, and $0.4 million of other transaction expenses.

Based on an ongoing assessment of our service and delivery network, Old National consolidated ten banking centers in 2018 and one additional banking center in 2019. On January 21, 2020, Old National announced a plan to close 31 banking centers throughout its footprint: ten banking centers in each of Wisconsin and Indiana, five in Michigan, four in Minnesota and two in Kentucky. The Company expects to complete the optimization during the second quarter of 2020. In addition, Old National plans to close several non-branch facilities at a later date.