Old National Bancorp set to acquire Bremer Financial

Published 24/03/2025, 21:28
Old National Bancorp set to acquire Bremer Financial

Old National Bancorp (NASDAQ:ONB), headquartered in Evansville, Indiana, announced today the anticipated completion of its acquisition of Bremer Financial Corporation. With a current market capitalization of $6.86 billion and a strong financial health score of "GOOD" according to InvestingPro analysis, Old National continues to demonstrate its growth potential. This transaction is expected to finalize on May 1, 2025, subject to customary closing conditions.

Following regulatory approvals from the Federal Reserve Bank of St. Louis on March 5, 2025, and the Office of the Comptroller of the Currency on March 19, 2025, the merger is proceeding as planned. Bremer Financial Corporation’s shareholders approved the agreement during a special meeting on March 7, 2025. Old National’s strong financial position is evidenced by its impressive 43-year track record of consecutive dividend payments and current dividend yield of 2.64%.

The acquisition will occur through a two-step process. First, Old National will complete the Holding Company Transaction (JO:NTUJ), acquiring Bremer. Subsequently, Bremer Bank, National Association, will merge with and into Old National Bank, with Old National Bank continuing as the surviving institution.

Details of the merger agreement, initially filed on November 25, 2024, are available in Old National’s Current Report on Form 8-K with the U.S. Securities and Exchange Commission (SEC). This report outlines the structure and terms of the merger, providing a roadmap for the integration of the two financial entities.

The merger is a significant event in the banking sector, indicating Old National’s growth and expansion strategy. It is a strategic move designed to enhance the bank’s market presence and service offerings.

This announcement is based on a press release statement and contains forward-looking statements subject to risks, uncertainties, and assumptions. While Old National has cautioned that actual results could differ materially from those projected, InvestingPro data shows analyst consensus remains optimistic, with price targets ranging from $26 to $30 per share. The company’s current P/E ratio of 12.72 and solid profitability metrics suggest a stable financial foundation. For deeper insights into Old National’s valuation and growth prospects, investors can access comprehensive Pro Research Reports available on InvestingPro, covering over 1,400 US equities.

Investors and stakeholders are encouraged to review Old National’s filings with the SEC for a comprehensive understanding of the risks associated with the merger. The company has emphasized the importance of not placing undue reliance on these forward-looking statements, which reflect expectations as of today’s date.

In other recent news, Old National Bancorp reported strong financial results for the third quarter of 2024, surpassing both earnings and revenue forecasts. The company’s earnings per share (EPS) reached $0.49, exceeding the expected $0.46, while revenue was $489.95 million, slightly above the anticipated $486.89 million. RBC Capital Markets and Citi analysts have both adjusted their price targets for Old National Bancorp, with RBC raising it to $26 and Citi increasing it to $30, following the bank’s solid fourth-quarter performance and positive outlook for 2025. Raymond (NSE:RYMD) James also raised its price target to $29, maintaining a Strong Buy rating, highlighting the bank’s strategic moves in mergers and acquisitions, particularly the Bremer transaction. Old National Bancorp announced the retirement of Michael L. Scudder, marking the end of his tenure after stepping down from executive roles earlier. The company has not disclosed any immediate plans for a successor following Scudder’s retirement. These developments underscore the bank’s strong operational performance and strategic positioning in the financial sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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