Billion-dollar banks: Old National heads a list of 14 bank holding companies with assets of a billion or more.

• Author: Mayer, Kathy
• Position: Banking

Although other states approved statewide and interstate banking long before Indiana, the state's bank holding companies are faring well against the giants, making key acquisitions and expanding beyond traditional banking businesses. And even though they're smaller than many out-of-state bank corporations that had a head start in expansion, they're capturing hefty shares of the market.

"We've grown to a nice size, and we're pleased with what we've accomplished," says James Risinger, chairman and CEO of Evansvillebased Old National Bancorp, the state's leader in bank holding companies, with $9 billion in assets. More growth is on the horizon, he promises. "We think our future opportunities are pretty strong."

So does German American Bancorp in Jasper, weighing in at $1 billion in assets for its banks, which maintain separate charters. Says Mark Schroeder, president and CEO, "At the billion-dollar size, you're large enough to have competitive products and services, you've captured most of the economies of size, but you can still maintain the personal touch and the community knowledge."

Jim Marcuccilli, CEO of Fort Waynebased STAR Financial Bank, agrees that the local touch is the key to successful competition. STAR began in the small town of Upland, eventually moved to Fort Wayne and is now in several Indiana communities, but "we've opted to have a continuation of local presidents in each market. We have six distinct markets and we have local presidents there for the lending decisions."

Mike Vea, chairman, president and CEO of Integra Bank Corp. in Evansville, has worked for bigger companies. "I love it," he says of today's post. Integra's $3 billion in assets are just the right size for him. "We're big enough for technology and new products, and small enough for quality service. And we're quicker and more nimble than the big banks."

More than a dozen Indiana bank holding companies now boast assets of at least $1 billion.

OLD NATIONAL BANCORP

Assets: $9 billion

Headquartered in Evansville with more than 140 banking offices in Indiana, Illinois, Kentucky, Ohio and Tennessee, Old National Bancorp hit the Big Board in February when it began trading on the New York Stock Exchange. That followed a record year in 2001, with a 15 percent increase in per-share operating earnings and the integration of its three latest acquisitions: American National Bank in Muncie, Heritage Bank in Clarksville and Permanent Bank in Evansville.

The company employs about 3,200, nearly 2,500 of them at its 94 Indiana locations. Besides banking, which goes back to Old National's founding in 1834, the holding company today operates brokerage and insurance services, too.

In all, it's acquired 44 banks over the years, and recently entered the Indianapolis market with a downtown branch and loan production office. "In the near future we will be increasing our presence in that market," says CEO James Risinger.

This year it has agreed to sell six Indiana and Illinois branch offices. "We're substituting our investment in one community lacking growth...