updated: 8/16/2012 9:15:34 AM
Evansville-based Old National Bancorp (NYSE: ONB) is planning to sell or consolidate 27 branches. Locations in Kentucky and Illinois are being sold to other banks and 18 centers in Indiana will be consolidated into other locations. The company says the moves are part of ongoing efficiency improvements.
August 16, 2012
EVANSVILLE, Ind., Aug. 16, 2012 -- Old National Bank, Old National Bancorp's banking subsidiary, announced today plans to sell or consolidate 27 banking centers as part of ongoing efficiency and service delivery improvements.
Old National to sell deposits of nine banking centers - subject to regulatory approval and the satisfaction of customary closing
-- Five locations in Western Kentucky with total deposits of $93.7 million
and a deposit premium of 2.53% will be sold to Planters Bank
-- Two locations in Southern Illinois with total deposits of $46.3 million
and a deposit premium of 1.11% will be sold to Legence Bank
-- Two locations in Southern Illinois with total deposits of $33.5 million
and a deposit premium of approximately 0.3% will be sold to Area Bank
***All of the deposit amounts referenced above are based on balances as of August 10, 2012. The branch properties are expected to be sold in the transactions, except for one of the Southern Illinois properties involved in the Area Bank transaction. No loans are anticipated to be sold as a part of these transactions.
Old National to consolidate 18 banking centers into existing branch
-- Nine locations in the Indianapolis area
-- Five locations in Central Indiana
-- Four locations in Southern Indiana
Old National currently has 183 locations across Indiana, Western Kentucky, and Southern Illinois. As part of an ongoing efficiency initiative, Old National took a close look at its locations, examining such items as market dynamics, deposits per branch, proximity to other offices and client traffic. Half of the consolidations are Indianapolis in-store branches with an approaching expiring lease. These locations will be consolidated into a nearby Old National, many of which are within a one -- two mile radius.
Old National does not anticipate job eliminations as a result of these activities. Associates at consolidated locations will be offered comparable positions at nearby branches.
Clients of the sold or consolidated branches will be notified through the mail, online and through branch postings. The closures and conversions are anticipated to take place late fourth quarter of 2012 or early first quarter of 2013.
About Old National
Old National Bancorp is the largest financial services holding company headquartered in Indiana and, with $8.7 billion in assets, ranks among the top 100 banking companies in the United States. Since its founding in Evansville in 1834, Old National has focused on community banking by building long-term, highly valued partnerships with clients in its primary footprint of Indiana, Illinois and Kentucky. In addition to providing extensive services in retail and commercial banking, wealth management, investments and brokerage, Old National also owns Old National Insurance which is one of the top 100 largest agencies in the US and the 10th largest bank-owned insurance agency. For more information and financial data, please visit Investor Relations at oldnational.com.
Source: Old National Bancorp