Old National adds to Community Growth Plan
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Evansville-based Old National Bancorp is adding $1.2 billion to its Community Growth Plan that was originally unveiled in 2022. The plan, now totaling $9.5 billion, was created to support historically underserved and economically disadvantaged individuals, families and communities.
The original plan and the recently announced addendum were developed in collaboration with the National Community Reinvestment Coalition.
Old National says the additional investment is subject to the closing of the bank’s $344 million acquisition of CapStar Financial Holdings Inc. in Nashville, Tennessee, which is expected to take place in the second quarter.
The funding will allow Old National to extend the services outlined in the plan to communities served by CapStar. Such services include:
- Approximately $815 million in mortgage loan originations to promote increased home ownership and home improvement.
- Originating more than $332 million in loans to businesses with annual revenues of $1 million or less, and to small businesses located within low-to-moderate income areas.
- Investing more than $107 million in loans and investments in support of projects that provide affordable housing, revitalize distressed neighborhoods, and promote economic development initiatives in the communities Old National serves.
- Providing approximately $1.7 million in funding to organizations and for causes that provide community benefits as defined under the federal Community Reinvestment Act.
- Providing $4 million toward supporting opportunities for individuals and communities of color. This includes establishing two new banking centers within majority-minority communities and support for other impactful programs and activities.
“Supporting and strengthening the communities that Old National serves is a strategic priority and a defining characteristic of our Old National culture,” Old National CEO Jim Ryan said in a news release. “We are excited for this opportunity to expand on our existing partnership with NCRC and increase the positive impact of our Community Growth Plan.”
The original announcement of the Community Growth Plan was made less than two months after Old National settled a lawsuit alleging the bank discriminated against Black residents in its mortgage lending practices in Marion County, Indiana.