SKN | Old National Accuses Bell Bank of ‘Coup d’État’ in Minnesota Branch Dispute

Old National Bank has filed a lawsuit against Bell Bank, accusing the Fargo, North Dakota-based lender of orchestrating a coordinated mass resignation of senior employees that effectively shut down two Minnesota branches and disrupted customer relationships. The case adds to growing scrutiny around aggressive talent recruitment practices in regional banking markets.

The lawsuit, filed Monday in federal court in Minnesota, names Bell Bank and eight former Old National employees as defendants. Old National alleges the actions were deliberately planned to weaken its presence in the Brainerd–Baxter market and rapidly transfer business to Bell Bank.

Alleged Mass Resignation Forces Branch Closures

According to the filing, every senior business and commercial banking employee at Old National’s Brainerd, Minnesota, branch resigned simultaneously on the morning of December 8, forcing the branch to close. At roughly the same time, key employees at Old National’s nearby Baxter branch also resigned, leading to the closure of that location’s lobby.

Old National characterized the event as a “coup d’état,” arguing that such a synchronized departure could only have been achieved through weeks or months of planning while the employees were still bound by fiduciary duties of loyalty to the bank.

The complaint further alleges that the resignation letters contained identical typographical errors, which Old National says supports its claim of coordination. The bank also claims that departing employees removed boxes of documents and materials from the branches before corporate security or human resources teams could review them.

Claims of Client Poaching and Confidential Information

Old National alleges that within hours of resigning, the former employees were placed into roles at Bell Bank that allowed them to service the same customers they had handled at Old National. The lawsuit claims that clients were actively solicited to move their deposits, loans, and checking account relationships to Bell Bank on the same day, with the argument that Old National could no longer serve the market due to the branch closures.

The filing also alleges that the former employees attempted to recruit additional Old National bankers to Bell Bank, accelerating Bell’s entry into the Brainerd market without the time and expense of building a team organically.

After the resignations, Old National asked the former employees to certify that they did not possess or share confidential information, including customer data and credit details. According to the lawsuit, they did not provide such assurances, prompting legal action.

Bell Bank Pushes Back

Bell Bank disputes the allegations and denies any wrongdoing. A spokesperson said the bank looks forward to demonstrating why the employees chose to leave Old National and join Bell Bank, framing the moves as voluntary career decisions rather than a coordinated scheme.

“We are excited to have these new team members on board, and we look forward to serving the communities of Brainerd and Baxter,” the spokesperson said.

Old National declined to comment further, citing ongoing litigation and personnel matters.

Broader Context in Regional Banking

The dispute follows Old National’s $1.4 billion acquisition of Bremer Bank earlier this year. Bremer had built a strong presence in the Brainerd–Baxter area over decades, a point Old National emphasizes in its complaint. In September, Old National laid off 244 former Bremer employees, though it remains unclear how many were connected to the affected branches.

The case highlights intensifying competition for experienced bankers, deposits, and loans in regional markets, where talent mobility and client relationships can quickly shift market share. The outcome may shape how banks balance aggressive expansion strategies with legal and ethical boundaries in employee recruitment.

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