EVANSVILLE — Old National Bancorp has announced a $8.3 billion Community Growth Plan committing to support historically underserved and economically disadvantaged individuals, families and communities throughout its footprint. The plan was developed in collaboration with the National Community Reinvestment Coalition (NCRC) and its members and is subject to the closing of the First Midwest merger.
The plan includes nearly $5 billion in community lending and affordable housing commitments to underserved and low-to-moderate income borrowers and another $3.3 billion in community development initiatives and philanthropic programs in majority-minority neighborhoods over a five-year period. These investments include communities already served by Old National, as well as communities it will serve after completion of the merger with First Midwest.
“At Old National and First Midwest, engaging with, supporting and strengthening our communities is not only a strategic priority, it’s woven into the fabric of our cultural DNA,” said Old National Chairman and CEO Jim Ryan. “We recognize the important role that our banks play in helping to shape a better financial future, and we are proud to partner with NCRC to build on our strong legacy of service and make a lasting impact on the hundreds of communities we serve today, as well as in the future.”
Mike Scudder, Chairman and CEO of First Midwest, “First Midwest and Old National have strong and demonstrated track records of supporting low and moderate-income borrowers and those in low-and moderate-income areas. The scale and growth of our combined organization will enable us to become an even stronger community partner, and we look forward to doing even more to help meet the evolving needs of the vibrant and diverse communities and businesses within our footprint.”
Upon closing of the Old National and First Midwest merger, the combined company will create one of the largest banks headquartered in the Midwest, with more than $45 billion of total assets, $34 billion of assets under management, a presence in six of the largest Midwestern MSAs, strong commercial banking capabilities, a robust retail footprint and a significant wealth platform.
The plan addresses key areas of need identified after input from the NCRC and its member organizations, as well as its ongoing conversations with community partners, team members and clients:
Mortgage Lending: Old National is committing to providing approximately $2 billion of loans to promote increased home ownership and home improvement for low-to-moderate income households, particularly Black and Hispanic borrowers and those located in majority-minority communities. Old National is also expanding the availability of several of its existing innovative and specialized products to reduce inequities in homeownership, including its proprietary affordable residential program, federal and state government-sponsored credit programs and down payment assistance programs.
Small Business Lending: Old National and First Midwest are both recognized leaders in small business lending. In 2020, Old National originated $576 million and First Midwest originated $627 million in CRA-eligible loans to small businesses and farms. As part of the community development plan, Old National is committing more than $3 billion of loans to businesses with annual revenues of $1 million or less and to small businesses located within low to moderate income areas. The bank is also committed to establishing and/or expanding strategic relationships with other local community and financial organizations to increase access to capital to small businesses, including those in rural or agricultural areas.
Community Development Lending and Investments: Old National has a strong track record of providing capital to support projects that rehabilitate historic buildings, provide affordable housing, invest in low-income communities and generate alternative energy. Its plan includes a commitment of more than $3 billion in loans and investments focused on these important areas.
Philanthropic and Loan Subsidy Programs:
Old National is building upon its strong level of philanthropic support for communities it serves by providing approximately $24 million in funds over five years to organizations and for causes that provide community benefits as defined under the Community Reinvestment Act. In addition, Old National is establishing a loan subsidy fund of $2.5 million to assist borrowers in qualifying for residential loans.
Old National has also committed to working with the NCRC and other local community groups to identify additional opportunities to support the financially disadvantaged and communities of color, including through its supplier diversity and apprenticeship programs, as well as its talent acquisition and retention efforts.
Old National Bancorp, the holding company of Old National Bank, is the largest bank holding company headquartered in Indiana. Old National’s footprint includes Indiana, Illinois, Kentucky, Michigan, Minnesota and Wisconsin, including locations in Columbus. For more information, visit oldnational.com.
