Old National Bancorp Reports Significant Growth Following Bremer Acquisition

Old National Bancorp reported significant financial growth in its latest quarterly filing, with total assets reaching $71.0 billion as of June 30, 2025, a substantial increase from $53.6 billion at the end of 2024. This growth was primarily driven by the acquisition of Bremer Financial Corporation, which added approximately $16.3 billion in assets, $11.1 billion in loans, and $12.9 billion in deposits. For the second quarter of 2025, the company recorded net income applicable to common shareholders of $121.4 million, or $0.34 per diluted share, compared to $140.6 million, or $0.44 per diluted share, in the previous quarter.

The company’s net interest income surged to $514.8 million for the second quarter, up from $388.4 million in the same period last year, reflecting a 32.5% increase. This rise was attributed to organic loan growth, higher asset yields, and the contributions from Bremer, despite increased funding costs. The provision for credit losses also saw a significant rise, totaling $106.8 million, which included $75.6 million related to the acquired non-PCD loans from Bremer. Excluding this provision, the underlying credit quality remained stable, with net charge-offs to average loans at 0.24%.

Operationally, Old National's total loans increased to $47.9 billion, a 32% rise from $36.3 billion at the end of 2024. The loan portfolio was bolstered by the acquisition of Bremer, which added $11.2 billion in loans. The company also reported a 33.2% increase in total deposits, reaching $54.4 billion, driven by both the Bremer acquisition and organic growth. The bank's efficiency ratio improved to 55.8%, reflecting disciplined expense management amidst the integration of Bremer's operations.

In terms of strategic developments, Old National completed the acquisition of Bremer on May 1, 2025, which is expected to enhance its market presence, particularly in the Midwest and Southeast regions. The merger-related expenses for the second quarter amounted to $41.2 million, and the company anticipates further integration costs in the coming quarters. The acquisition is projected to yield significant synergies and growth opportunities, with management expressing confidence in the bank's ability to navigate the integration process effectively.

Looking ahead, Old National remains optimistic about its growth trajectory, supported by a strong capital position and a diversified loan portfolio. The company’s Tier 1 capital ratio stood at 11.20%, well above regulatory requirements, indicating a solid foundation for future expansion. Management is focused on leveraging the strengths of the combined entity to drive profitability and enhance shareholder value, while also maintaining a keen eye on credit quality and market conditions.