Summary
$1.6B In New Commitments Across Recently Expanded Bank Footprint In Upper Midwest
The National Community Reinvestment Coalition and Old National Bancorp announced an addendum to Old National’s multi-year Community Growth Plan, with $1.6 billion in new lending, investments and philanthropy commitments in Minnesota, North Dakota and Wisconsin collectively.
“Old National’s expanded commitments to their new markets in Minnesota, Wisconsin and North Dakota reflect the bank’s ongoing dedication to investing in underserved communities where limited access to financial services can undermine economic growth,” said Jesse Van Tol, President and CEO of NCRC. “I’m proud to deepen our partnership with Old National, and to help bring their energetic team into close collaboration with NCRC members working to revitalize both the region as a whole and in cities like Saint Paul and tribal lands and Native communities across the region.”
The addendum follows Old National’s acquisition of Bremer Bank and brings Old National’s total community commitments in conjunction with NCRC to $11.6 billion.
Since 2016, NCRC has facilitated more than 30 community benefits agreements with bank groups that committed roughly $600 billion for mortgage, small business and community development lending, investments and philanthropy in LMI and under-resourced communities.
The addendum was co-signed by 11 NCRC member organizations operating in the region:
- Neighborhood Development Alliance
- NATIVE, Inc.
- Exodus Lending
- Propel Nonprofits
- Latino Economic Development Center (LEDC)
- Beyond Shelter, Inc.
- Metro Milwaukee Fair Housing Council
- Scale Link
- Project for Pride in Living, Inc.
- East Side Neighborhood Development Company
- Indigenized Energy
“LEDC is pleased to be able to work with Old National Bank to bring their commitment to the community in a way that brings the people we serve to the center,” said Alma Flores, Executive Director of the Latino Economic Development Development Center in Saint Paul.
“Old National Bank’s significant lending and investment commitment is very meaningful and impactful,” said Daniel Madler, CEO of Beyond Shelter, Inc., in Fargo, North Dakota. “I cannot wait for the opportunity to put the money to work in the Bremer Bank footprint.”
A detailed breakdown of the components of the addendum can be found at the bottom of this press release. Specific highlights of the updated Plan include:
- Mortgage Lending: Provide more than $331 million in loan originations to promote increased home ownership and home improvement.
- Small Business Lending: Originate more than $1.1 billion 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 approximately $179 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 more than $2 million in funding to organizations and for causes that provide community benefits as defined under the federal Community Reinvestment Act.
In addition, the Addendum will include several qualitative commitments, aimed at prioritizing and maximizing the commitments above, including: exploring opportunities to support Tribal communities and Native-led CDCs, providing access to capital solutions for small businesses, down payment assistance offerings to underserved populations and the expansion of ONB’s “Real Life Finance” financial education program throughout the Bremer footprint. Old National will also expand the Advisory Committee by including an additional member representing the North Dakota tribal community and a Special Impact Project of at least $250,000, comprised of Community Development Loans and/or Investments. These items will be coordinated with the input of NCRC.
Old National retains an ongoing commitment to work with NCRC and other local community groups to identify additional opportunities to support financially disadvantaged communities, including through its supplier diversity and apprenticeship programs, as well as its talent acquisition and retention efforts.
Summary of the Addendum to Community Growth Plan Between the National Community Reinvestment Coalition and Old National Bank
In connection with Old National Bank’s acquisition of Bremer Bank, Old National will lend or invest $1.635 billion to underserved borrowers and communities within the Bremer Bank footprint over the three-year period from January 1, 2026 to December 31, 2028 (the “Addendum Term”).
Mortgage Lending to the Underserved
Commitment: $331 million
Building on Old National’s commitment to serve communities, Old National has committed to increasing mortgage lending over baselines for underserved borrowers in the Bremer Bank footprint over the Addendum Term. Old National commits to increases ranging from 10% to 30% in both home purchase lending and home improvement lending for underserved borrowers, including borrowers with low or moderate incomes, and to borrowers in LMI or majority-minority census tracts. The Addendum also includes sub goals for each state in the Bremer Bank footprint.
Small Business Lending
Commitment: $1.123 billion
Old National Bank commits to $1.1 billion in small business lending in the Bremer Bank footprint, with sub-goals for loans to businesses with annual revenues of $1 million or less and to small businesses located within low- to moderate-income areas, both overall and for each state in the Bremer Bank footprint.
Community Development Lending and Investment (CDLI)
Commitment: $179 million
Old National commits to $179 million in community development loans and investments for the Bremer Bank footprint, representing a 60% increase by 2028 over Bremer Bank baselines.
CRA Focused Philanthropy
Commitment: $2 million
Old National commits to providing $2 million in philanthropy in the former Bremer Bank footprint over the Addendum Term. Old National will work with NCRC to develop a special community impact project within the legacy Bremer communities of at least $250,000 (which can be a combination of investments or loans).
Banking Centers
Old National commits to retaining Bremer’s current banking centers presence that are in low- and moderate-income communities in its new expanded footprint in North Dakota, Minnesota and Wisconsin, except for Bremer banking centers that are within 2 miles of a current Old National banking center. Although banking centers may be relocated within reasonable proximity in such LMI communities for various operational reasons over the course of the Agreement, Old National Bank commits to retaining a presence within existing Bremer LMI areas.
Plan Governance and Annual Report
Old National will expand its Community Advisory Committee by adding an additional member representing tribal communities in North Dakota, based on a recommendation from the NCRC.
Old National will continue to provide annual reports of the progress of this Plan to NCRC and the Community Advisory Board, using a format mutually agreed upon with NCRC. Old National will also include a summary of the progress of the addendum and overall Community Growth Plan as part of its annual public Environmental, Social and Governance (“ESG”) Report.
