Old National (ONB) Announces Branch Sales, Consolidation; Sees $2M-$3M of Costs in H212

August 16, 2012 9:10 AM EDT
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On August 16, 2012, Old National Bancorp’s (NYSE: ONB) wholly owned bank subsidiary, Old National Bank, announced plans to sell or consolidate twenty-seven (27) banking centers as part of its ongoing efficiency improvements.

In connection with the efficiency improvements, ONB entered into branch purchase and assumption agreements with the following three banks: (i) Planters Bank, Inc. to purchase the deposits and banking center facilities at five of ONB’s Western Kentucky branches; (ii) Legence Bank to purchase the deposits and banking center facilities at two of ONB’s Southern Illinois branches; and (iii) Area Bank to purchase one ONB banking center property and deposits from two ONB locations in Southern Illinois.

The three branch sales are subject to regulatory approval and customary closing conditions. ONB expects the transactions to close in either the fourth quarter of 2012 or the first quarter of 2013. The consolidation of 18 banking centers into other ONB locations is expected to occur in the fourth quarter of 2012.

Old National recorded expenses of approximately $1.3 million in the second quarter of 2012 relating to these efficiency improvements and expects additional costs of $2 to $3 million in the second half of this year.

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