Old National Bank, the largest Indiana-based bank by assets, plans to close 19 branches in 2015, including five in the Indianapolis area.
The branches pegged to close locally are all in-store locations, several of which were assumed in 2009 when the Evansville-based bank bolstered its Indianapolis presence with its acquisition of Charter One.
Randy Reichmann, CEO and president of the bank's Indianapolis region, said ONB begin shutting in-store locations about three years ago and that this round should be the last.
"We feel like we can just be more efficient in stand-alone branches with much better visibility," Reichmann said.
With the closing of the five branches, which is expected in the spring, Old National Bank will have 21 remaining centers in the Indianapolis area. The five branches slated to close are located in:
— Westfield, 17447 Carey Road., inside Kroger
— Fishers, 8997 E 116th St., inside Starbucks
— Indianapolis, 10800 Pendleton Pike., inside Starbucks
— Indianapolis, 11625 Fox Road., inside Marsh
— Franklin, 2125 N Morton St., inside Walmart
Reichmann told IBJ last April that many of the branch closures in the wake of the Charter One acquisition were related to geographical overlap. But branch performance is a factor, too, and stand-alone locations tend to have an edge.
"You're not as likely to explore a banking relationship with us as you are if you come into a free-standing banking center," he said.
Reichmann suggested the closings won't represent a downsizing for the company, but rather shift in resources.
"We see gaps here and there and we're actually negotiating to buy property in a couple of different places," he said. "We like Indianapolis and we're going to continue to expand here, but we're going to do it in a more efficient and effective manner."
The closures were announced Monday in the company's quarterly earnings report. The company said that it would sell 12 branches in Illinois, five branches in eastern Indiana and Ohio, and close or consolidate 19 other branches throughout the Old National franchise.
The bank has $11.6 billion in assets. Its overall footprint includes Illinois, Kentucky, Indiana and Michigan.
According to its earnings report, year-over-year profit was up 19 percent in the fourth quarter and 2.7 percent in 2014.
"I have an old saying I like to use," Reichmann said. "You don't have to be sick to get better."