WASHINGTON--The Federal Reserve on Friday said it approved Old National Bancorp's (ONB) acquisition of Indiana Community Bancorp (INCB) and its subsidiary, Indiana Bank and Trust Co.

Old National, based in Evansville, Ind., has about $8.6 billion in assets and is the fourth-largest insured-depository organization in the state, the Fed said.

Indiana Community, based in Columbus, Ind., has consolidated assets of approximately $968 million.

Write to Jeffrey Sparshott at jeffrey.sparshott@dowjones.com

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