GREATER LAFAYETTE, Ind. (WLFI) – Old National Bank is merging with Lafayette Savings Bank to expand the number Old National Banks in Lafayette and benefit bank members.
Lafayette Savings Bank has been a part of Greater Lafayette for more than 145 years. John Purdue became the first president of the bank in 1868. Lafayette Savings Bank was the first savings bank in Indiana.
Since then, the bank has served Lafayette, but there will be changes by the end of 2014.
“Our board unanimously approved partnership with Old National Bank. This morning, we announced it to all our employees and announced it to the public,” said Randy Williams, Lafayette Savings Bank president.
Williams said it is a merger between Lafayette Savings Banks and Old National Bank. The bank locations will remain open, but the name will be changed to Old National Bank.
Williams said the recession brought hard times to small community banks.
“Community banking, in general, has fallen on difficult times in terms of the ability to grow,” said Williams. “We are a good performing bank. We want to stay a good performing bank, and we need to get the size to be able to spread all these costs.”
Williams said the merger will let those who bank at Lafayette Savings Bank to become members at Old National Bank.
Old National Bank President Bob Jones said it will be beneficial for the members because they will be able to access banks and ATM’s around the state. Trust services were not offered at Lafayette Savings Bank, but will be available at Old National Bank.
“We love the people. We love their locations, and we love the community,” said Jones. “Really, this is one plus one to make three in such a vibrant and growing community.”
Jones said the merger will cost Old National Bank about $66 million.
“Which is an investment in the community, and it is an investment in the people of Lafayette Savings Bank,” said Jones.
Willams said the bank plans on becoming Old National Bank by the end of the year. He said they do not plan on cutting staff at any Lafayette Savings Bank branch at this time.