Old National Bancorp Expands into New Markets and Enhances Financial Stability

2025-01-24

Old National Bancorp (ONB) recently conducted its 2024 Q4 Earnings call, during which key executives and participants deliberated on various facets of the company's performance and future strategies. The discussion centered on Old National's banking approach, emphasizing the significance of low-cost core deposits in driving loan growth. The company disclosed robust financial outcomes for the entire 2024 fiscal year, with a GAAP per common share of $1.68 and an adjusted return on average tangible common equity of 16.9%.

In a bid to expand its presence, Old National Bancorp is venturing into Minnesota, North Carolina, and Wisconsin in the Midwest region, with regulatory filings submitted for a forthcoming partnership. The company foresees finalizing the partnership by midyear, with an expectation to realize 100% of cost savings by 2026. Mark Sander is set to retire as President and COO on June 30, while Dan Hermann has assumed the role of Lead Independent Director, succeeding Becky Skillman.

The company's balance sheet exhibited stability and enhancement, boasting a CET1 ratio of 11.38% and a consistent total loan-to-deposit ratio. Despite encountering obstacles such as reduced total loans and escalated expenses, Old National remains steadfast in its growth pursuits, maintaining prudent expense management practices and demonstrating resilient credit performance. The company's strategic focal points encompass organic deposit growth, upholding a top quartile adjusted return profile, and augmenting tangible book value per share.

Looking to the future, Old National is vigilantly monitoring the regulatory landscape and exploring potential capital utilization avenues under the new administration. The company aims to capture deposit beta throughout the year and uphold a robust capital stance. Discussions during the call also touched upon loan growth forecasts, credit trends, and the ramifications of partnerships on the organization's future trajectory.

In summary, Old National Bancorp's earnings call offered valuable insights into the company's performance, strategic trajectory, and aspirations for growth and stability amidst the evolving business environment. Interested investors and stakeholders can access a replay of the call for further details and stay abreast of Old National's progress through their website and investor relations channels.