© Reuters.
EVANSVILLE, Ind. – Old National Bancorp (NASDAQ: ONB), a Midwest-based banking institution, has announced an expansion to its $8.3 billion Community Growth Plan with an additional $1.2 billion commitment. This initiative aims to enhance support for historically underserved and economically disadvantaged communities across the Midwest and Southeast regions, particularly in areas served by CapStar Bank in Tennessee.
The additional funding is contingent upon the successful completion of Old National’s partnership with CapStar Financial Holdings, Inc. (NASDAQ: CSTR), which is expected to significantly increase Old National’s total assets and presence in the region.
The enhanced plan includes specific targets across various areas:
- Mortgage Lending: Approximately $815 million is allocated for loans to promote home ownership and improvement.
- Small Business Lending: More than $332 million in loans will be directed to small businesses, especially those with annual revenues below $1 million and those in low-to-moderate income areas.
- Community Development Lending and Investments: Over $107 million will support affordable housing, neighborhood revitalization, and economic development initiatives.
- Philanthropic Activities: Around $1.7 million in funding will go to organizations that benefit communities under the federal Community Reinvestment Act, with $850,000 earmarked for new relationships.
- Racial Equity Commitment: $4 million is dedicated to supporting opportunities for communities of color, including the establishment of two new banking centers in majority-minority areas.
Old National, tracing its roots back to 1834, has a significant wealth platform and comprehensive services in retail, commercial banking, wealth management, investment, and capital market services.
This expansion of the Community Growth Plan is based on a press release statement from Old National Bancorp.
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