Old National Bancorp Reports $523.1 Million Net Income for 2024, Announces Bremer Acquisition

Old National Bancorp (ONB) reported net income applicable to common shareholders of $523.1 million, or $1.68 per diluted common share, for the year ended December 31, 2024. This compares to $565.8 million, or $1.94 per diluted share, in 2023. The 2024 results included $37.3 million in merger-related expenses, $15.3 million in CECL Day 1 non-PCD provision expense, a $13.3 million non-cash expense related to pension asset distribution, a $3.0 million FDIC special assessment, and $2.6 million in separation expenses. Excluding these items, adjusted net income was $578.1 million, or $1.86 per diluted share. Net interest income increased 2% to $1.5 billion in 2024, driven by acquisitions and loan growth. Noninterest income rose to $354.7 million from $333.3 million in 2023, primarily due to the CapStar acquisition and higher fees. Noninterest expense increased by $68.1 million, reflecting merger-related costs and higher salaries.

Significant developments in 2024 included the April 1st acquisition of CapStar Financial Holdings, Inc., adding $3.1 billion in assets, $2.1 billion in loans, and $2.6 billion in deposits. This strengthened ONB's presence in Nashville, Tennessee, and expanded its footprint into new high-growth markets. Furthermore, ONB announced a definitive merger agreement to acquire Bremer Financial Corporation, with a transaction value of approximately $1.4 billion, anticipated to close mid-2025. This acquisition will add $16.5 billion in assets, $11.8 billion in loans, and $13.2 billion in deposits, expanding ONB's presence in the upper Midwest. The company also completed the sale of its health savings account business in 2022, resulting in a $90.7 million pre-tax gain.

ONB's total assets reached $53.6 billion at December 31, 2024, a $4.5 billion increase from 2023, primarily driven by the CapStar acquisition and loan growth. Total deposits increased by 10% to $40.8 billion, while total loans grew by 10% to $36.3 billion. The company employed 4,066 full-time equivalent team members at December 31, 2024, and operated 280 banking centers across nine states. Commercial real estate loans comprised 45% of the total loan portfolio at year-end 2024, totaling $16.3 billion. The allowance for credit losses on loans increased to $392.5 million from $307.6 million in 2023, reflecting the CapStar acquisition, loan growth, and macroeconomic factors.

The company's risk management strategy addresses strategic, market, liquidity, credit, operational, talent management, compliance, regulatory, legal, and reputational risks. ONB uses various models and processes to assess and mitigate these risks, including stress testing and derivative instruments. The company highlighted several key risks, including economic downturns, interest rate volatility, competition, cybersecurity threats, and regulatory changes. ONB's liquidity management focuses on maintaining sufficient funding sources to meet obligations and support growth. The company's credit risk management involves ongoing monitoring of loan quality and maintaining adequate allowances for credit losses.

Looking ahead, ONB expects to build on its 2024 performance, focusing on loan and deposit growth, expanding revenue-generating businesses, maintaining strong credit quality, and managing expenses effectively. The company anticipates navigating changes in interest rates and economic conditions while pursuing strategic growth opportunities, including the Bremer acquisition. The company's forward-looking statements are subject to various risks and uncertainties, as detailed in the filing.