Old National Bancorp (ONB) in Evansville, Ind., plans to close approximately 10% of its branches in an effort to improve efficiency.
The $9.4 billion-asset company will consolidate 18 Indiana banking locations in the third quarter, it disclosed on Thursday in a filing with the Securities and Exchange Commission. The company said the closings are part of an effort to improve its efficiency ratio to 65% or better from the 68.34% ratio it reported as of March 31.
Old National expects the branch consolidation to lower costs by $3.5 to $4.5 million a year. It expects to take a $2.5 million to $3.5 million third-quarter charge related to the closings.
Old National will close 16 in-store branches, including 13 in Indianapolis, and two traditional branches, located in Richmond and Tell City, Ind. Old National currently has 170 branches across Indiana, Kentucky, Illinois and Ohio.
Old National has made significant changes to its branch network in the past year. In January, it agreed to buy 24 former Bank of America branches in northern Indiana and southern Michigan. Last August, it said it would sell or close 27 branches, many of which it inherited when it bought the failed Integra Bank in 2011.