Old National Bancorp in Evansville, Ind., is trimming its branch network.
The $17.5 billion-asset company disclosed in its first-quarter earnings release that it will sell 10 branches in Wisconsin, along with $274 million in deposits, to Marine Credit Union in La Crosse, Wis. No loans are changing hands.
The branch sale is expected to close in the third quarter. Old National did not disclose the price Marine will pay.
Old National said it will also close 10 branches. The moves will shrink the branch network by about 10%. The effort is expected to save the company about $3 million annually.
The sales and closings are tied to an “ongoing focus on improving the operating dynamics of the franchise," Robert Jones, Old National's chairman and CEO, said in the release.
Old National's earnings rose by 33% from a year earlier, to $47.9 million, or 31 cents a share. The results were skewed by merger and integration costs and branch consolidation costs.
Net interest income increased by 22% to $128.6 million. Total loans increased by 23% to $11.2 billion, while the net interest margin narrowed by 5 basis points to 3.45%.
Noninterest income fell by 1.2% to $42.4 million, reflecting lower capital markets income and a seasonal decline in deposit services charges.
Noninterest expense rose by 16% to $117.6 million. Merger and integration costs, branch charges and seasonal factors including snow removal affected noninterest expense.