First National Bank of Valparaiso has been sold to South Bend-based 1st Source Bank in a deal which closed late last week.

1st Source acquired the long-time hometown financial institution for $135 million. 1st Source, with 67 banking centers in Indiana and Michigan, has said it plans a seamless takeover.

The acquisition adds First National Bank's 26 locations and $600 million in assets to the 1st Source banking system.