Southern Indiana Business Report
EVANSVILLE – Old National Bancorp (“Old National”) today announced an addendum to its $8.3 billion Community Growth Plan (“the Plan”), originally unveiled in 2022, adding approximately $1.2 billion to a long-standing commitment that continues to support historically underserved and economically-disadvantaged individuals, families and communities throughout its Midwest and Southeast footprint.
The Plan and addendum were developed in collaboration with the National Community Reinvestment Coalition (NCRC) and its members. The addendum is subject to the closing of Old National’s previously announced partnership with Nashville-based CapStar Financial Holdings, Inc. (“CapStar”) (NASDAQ: CSTR), the holding company for CapStar Bank.
These new commitments expand on Old National’s long-standing pledge to support historically underserved and economically disadvantaged individuals, families and communities throughout our footprint by extending these services into CapStar-served communities in Tennessee. These commitments include additional quantitative goals for mortgage lending, small business lending, community development lending and investments, philanthropic activities, and racial equity commitments.
“Supporting and strengthening the communities that Old National serves is a strategic priority and a defining characteristic of our Old National culture,” said Old National CEO Jim Ryan. “We are excited for this opportunity to expand on our existing partnership with NCRC and increase the positive impact of our Community Growth Plan.”
“Old National’s commitments to under-resourced communities in this addendum are a great example of how the Community Reinvestment Act should work,” said NCRC President and CEO Jesse Van Tol. “Every single bank merger should come with clearly defined goals like these. Old National understands how such collaboration with community leaders is in the best interest of everyone.”
Highlights
- Mortgage Lending: Provide approximately $815 million in loan originations to promote increased home ownership and home improvement.
- Small Business Lending: Originate 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.
- Community Development Lending and Investments: Invest 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.
- Philanthropic Activities: Provide approximately $1.7 million in funding to organizations and for causes that provide community benefits as defined under the federal Community Reinvestment Act. In addition, Old National will designate approximately $850,000 of this amount to newly established relationships.
- Racial Equity Commitment: Provide $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.
About Old National
Old National is one of the largest banks headquartered in the Midwest, with strong commercial banking capabilities, a robust retail footprint, a significant wealth platform, and, upon the closing of the CapStar partnership, nearly $55 billion of total assets and a presence in seven of the largest Midwestern MSAs.