** Shares of regional lender Old National Bancorp ONB.O jump as much as 9.7%; last up 7.6% at $23.30

** Stock trading at its highest since September 2008

** ONB will buy privately held Minnesota-based Bremer Financial in a $1.4 bln cash-and-stock deal, the companies say

** Deal creates a combined Midwest-focused bank with $70 bln in assets and bolsters ONB's presence in Minnesota, North Dakota and Wisconsin

** Bremer shareholders will receive 4.182 shares of ONB and $26.22 in cash, valuing the lender at $116.76/shr

** Piper Sandler says the deal greatly improves ONB's Minneapolis–Saint Paul footprint and provides cost savings opportunities

** Financials look compelling for ONB shareholders, Piper Sandler says

** As of last close, ONB shares up 28.2% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))