Indiana has fewer banks, but employment inching up

While the number of Indiana banks continues to decline, the number of workers they employ appears on the rebound.

The number of federally insured institutions in Indiana stood at 119 at the end of 2015, according to the Federal Deposit Insurance Corp., down 31 percent since 2006.

Full-time-equivalent employees at these banks, meanwhile, reached a six-year high of 17,145, suggesting the steep employment cuts leading up to 2010 have hit a bottom.

The FDIC defines full-time equivalent as “the number of employees on the payroll” at a bank or its subsidiaries. Joe Fenech, a Carmel-based bank analyst with Hovde Group, said some of the employment growth may come from banks like Evansville-based Old National Bank and New Albany-based Your Community Bank making out-of-state acquisitions over the past few years.

“Bottom line, it’s likely just a function of Indiana banks getting larger by expanding their operations outside of Indiana, rather than it is a sign of increased hiring within the state by local banks.”

The shrinking bank count in Indiana reflects the trend nationally, with the number of financial institutions sliding 29 percent since 2006 to 6,182.

But the headcount at Indiana banks has grown two straight years, while it has fallen three consecutive years at the national level.•