Old National Bancorp
NASDAQ:ONB
Old National Bancorp
Old National Bancorp, rooted in the heart of the Midwest, has cultivated its legacy from a modest regional bank into a formidable financial institution. Founded in 1834, this Evansville, Indiana-based company thrives on a deep understanding of community banking and the economic rhythms of the regions it serves. Old National operates predominantly in the Midwest, with an extensive network of branches and a robust digital presence that expands its reach to a broad clientele. The bank’s business model is a traditional one, supported by a strong foundation in gathering deposits and extending loans. From personal and commercial banking to insurance, investments, and wealth management, Old National crafts its services to cater to both individual and business clients, ensuring a diversified revenue stream.
In the world of finance where relationships are a key asset, Old National's strategy hinges on building and maintaining trust with its customers. The company has woven a fabric of services that meet the financial needs of its clientele, primarily by offering a comprehensive choice of products—ranging from checking and savings accounts to loans and mortgages. Long-term success for Old National emerges from its ability to leverage its strong deposit base to fund loans. Another pillar of its strategy includes prudent risk management and keen operational efficiency, allowing for sustainable profit margins. Fees from services like wealth management and treasury management further bolster its income, providing stability against the cyclical nature of interest-dependent revenues. This intricate dance between traditional banking practices and innovative financial services ensures Old National Bancorp remains a cornerstone in its community while expanding its economic footprint.
Old National Bancorp, rooted in the heart of the Midwest, has cultivated its legacy from a modest regional bank into a formidable financial institution. Founded in 1834, this Evansville, Indiana-based company thrives on a deep understanding of community banking and the economic rhythms of the regions it serves. Old National operates predominantly in the Midwest, with an extensive network of branches and a robust digital presence that expands its reach to a broad clientele. The bank’s business model is a traditional one, supported by a strong foundation in gathering deposits and extending loans. From personal and commercial banking to insurance, investments, and wealth management, Old National crafts its services to cater to both individual and business clients, ensuring a diversified revenue stream.
In the world of finance where relationships are a key asset, Old National's strategy hinges on building and maintaining trust with its customers. The company has woven a fabric of services that meet the financial needs of its clientele, primarily by offering a comprehensive choice of products—ranging from checking and savings accounts to loans and mortgages. Long-term success for Old National emerges from its ability to leverage its strong deposit base to fund loans. Another pillar of its strategy includes prudent risk management and keen operational efficiency, allowing for sustainable profit margins. Fees from services like wealth management and treasury management further bolster its income, providing stability against the cyclical nature of interest-dependent revenues. This intricate dance between traditional banking practices and innovative financial services ensures Old National Bancorp remains a cornerstone in its community while expanding its economic footprint.
Record Results: Old National Bancorp reported record adjusted EPS, net income, and efficiency ratio for 2025, with a strong fourth quarter finish.
Profitability: Adjusted return on average tangible common equity was nearly 20%, with an adjusted ROA of 1.37% and a record adjusted efficiency ratio of 46%.
Loan and Deposit Growth: Loans grew 6.4% annualized from last quarter; total deposits increased 0.6% annualized with a stable loan-to-deposit ratio of 89%.
Expense Control: Adjusted noninterest expenses were well-managed at $365 million, supporting positive operating leverage and cost saves from the Bremer integration.
Credit Quality: Credit metrics improved, with an 8% reduction in criticized/classified loans and nonaccrual loans down 12%. Net charge-offs remained low.
Capital Strength: CET1 ratio is over 11%, with tangible book value per share up 15% year-over-year, supporting ongoing share repurchases.
2026 Outlook: Management expects stable to improving net interest income and margin, 4% to 6% loan growth, controlled expenses, and continued capital return via buybacks.
