Old National claims rival Bell Bank staged ‘coup d’etat’ at its Brainerd branch

A bank war has erupted in Brainerd, with Old National claiming rival Bell Bank poached eight of its senior employees in a conspiracy to cripple its local operations.

The employees’ en masse departure earlier this month so gummed up Old National’s business that the bank shuttered its Brainerd branch and the lobby of its Baxter office for one day.

“Bell Bank’s actions go far beyond normal, lawful competition,” Old National said in a lawsuit filed in federal court in Minnesota this week against Bell and its eight former employees. Old National dubbed the incident a “coup d’etat.”

Bell Bank, in a statement, said it “disputes any allegations of wrongdoing and looks forward to demonstrating why these employees left Old National Bank and joined Bell Bank.”

Evansville, Ind., based Old National Bancorp greatly bolstered its Minnesota presence this year with its $1.4 billion purchase of St. Paul-based Bremer Financial.

Bremer had 70 branches, including the offices in Brainerd and Baxter that are at the center of Old National’s lawsuit.

Old National is a publicly traded banking company with $71 billion in assets. Some Upper Midwest banks have worked to snag business from the former Bremer banks on the heels of Old National’s takeover.

Old National said in the suit that Bell is in the process of opening a branch in Brainerd.

Bell confirmed to the Minnesota Star Tribune that it plans to open a branch in the “Brainerd/Baxter community.” A site has not been chosen yet, but Bell Bank said it expects to start construction this spring.

Currently, the eight former Old National employees are working out of a temporary “loan production/deposit production” office in Baxter, Bell said. “We are excited to have these new team members on board.”

Old National claims its former workers are now soliciting its customers and some of its current employees to migrate to Bell Bank.

On Dec. 7 and 8, six Old National employees in Brainerd — all but one of them a vice president — resigned. Two other bankers in nearby Baxter also quit on Dec. 8. They all left their employee badges and credit cards in their desks.

The sudden closures caused “customer confusion, concern and distrust,” Old National claims, harming its “goodwill and standing in the Brainerd and Baxter markets.”

Video surveillance footage of the Brainerd and Baxter shows the eight employees entering the branches on Dec. 8 — a Monday — before business hours, the suit read.

They removed several boxes of documents without any inspection by Old National human resources or security employees, Old National claims.

Old National accused Bell and the eight employees of misappropriating trade secrets, unjust enrichment and engaging in a civil conspiracy.

Old National is asking the court for an injunction prohibiting Bell from employing its eight former workers; soliciting its customers and current employees; and retaining confidential Old National information.