Evansville-based Old National Bank will close nine Indianapolis-area branches by the end of the year and consolidate them into nearby branches in a move to streamline its operations, the company announced Thursday.
Old National, the largest bank headquartered in Indiana, also will close and consolidate nine other branches around the state. Old National said no jobs are likely to be lost in the consolidations because workers at all closed branches would be offered jobs at the consolidated branches.
In addition, Old National said it has struck an agreement to sell nine bank branches and $173.5 million in deposits to three banks in western Kentucky and southern Illinois. Eight of the nine branch buildings will be sold in those transactions.
“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,” company officials explained in a prepared statement.
Old National recorded expenses of about $1.3 million in the second quarter of 2012 for those changes, the company disclosed Thursday in a securities filing. It expects additional costs of $2 million to $3 million in the second half of this year.
Old National had total deposits of more than $1.8 billion at the end of the second quarter.
The nine locations that will close in Indianapolis are inside other stores and have leases that are near their expiration.
— The Old National branch at 2810 E. 116th St. in Carmel will consolidate with a branch at 1430 S. Rangeline Road in Carmel.
— The branch inside a Marsh store at 10679 N. Michigan Road in Zionsville will consolidate into a bank in a Starbucks at 10460 N. Michigan in Carmel.
— A branch in the Marsh at 5 Boone Village in Zionsville will combine with the branch at 385 S. Main St. in Zionsville.
— A bank in a Kroger store at 1930 E. Main St. in Plainfield will consolidate with the Old National branch at 802 Edwards Drive in Plainfield.
— The bank inside a Kroger at 1330 W. Southport Road will move to 1510 W. Southport, where there is an Indiana Bank & Trust Branch. Old National agreed in January to acquire Columbus-based Indiana Bank & Trust.
— The bank in a Kroger at 11101 Pendleton Pike in Indianapolis will combine with the bank in a Starbucks at 10800 Pendleton Pike in Indianapolis.
— The bank in a Kroger at 5173 W Washington St. in Indianapolis will consolidate with the bank in a Marsh at 35 N. Lynhurst Drive in Indianapolis.
— Two banking centers—one in a Marsh at 1240 N. State St. in Greenfield and the other inside a Kroger at 10450 E. Washington St. in Indianapolis—will be consolidated into a Starbucks at 9605 E. Washington St. in Indianapolis.
The moves by Old National will reduce its total number of locations from 183 to 156.
Old National said it has 52 branches in Indianapolis and the counties surrounding it. These actions will chop that number down to 43.The company has about 455 Indianapolis-area employees.