Old National Bancorp (ONB): Business Model Canvas [Dec-2025 Updated]

You're digging into how a major regional player manages a massive integration while still hitting elite performance metrics. Honestly, looking at Old National Bancorp's Q3 2025 picture, it's clear they've successfully digested the Bremer merger, showing an adjusted Return on Average Tangible Common Equity of 20.1% for the quarter. With total assets approaching \$71.210 billion and Net Interest Income reaching \$582.6 million (FTE), their current business model is clearly built on scaling that low-cost deposit franchise and deepening commercial relationships. So, if you want the precise breakdown of the key partnerships, activities, and revenue streams that underpin this strong performance, dive into the full Business Model Canvas below.

Old National Bancorp (ONB) - Canvas Business Model: Key Partnerships

You're looking at how Old National Bancorp (ONB) is building scale and capability through strategic alliances, which is key for a regional bank navigating today's environment. These aren't just handshake deals; they involve significant asset integration and technology overhauls. Here's the breakdown of the most critical external relationships as of late 2025.

The integration with Bremer Bank is the most significant recent move, completed on May 1, 2025. This partnership immediately bolstered Old National Bancorp's footprint in the Upper Midwest, adding scale to absorb regulatory costs and invest in tech. The systems conversion for Bremer operations was targeted for mid-October 2025, a milestone expected to unlock further operational value. As of December 31, 2024, Bremer brought assets of approximately $16.5 billion, deposits of $13.2 billion, and loans of $11.8 billion. Following the merger, Old National Bancorp reported total assets of $70 billion and $37 billion in assets under management (based on March 31, 2025, pro forma data). Also, this integration led Old National Bancorp to increase its Community Growth Plan commitment by $1.6 billion.

The commitment to local support is quantified through partnerships with various Community Organizations. For instance, in 2024, Old National Bancorp invested over $12.6 million in grants and sponsorships, which benefited more than 2,500 non-profits. Team members logged nearly 68,000 volunteer hours in 2024, which is an estimated value exceeding $2 million. To be fair, the Old National Bank Foundation added another $3.68 million in grants to 229 organizations that same year. This commitment was formalized by expanding the five-year Community Growth Plan to $11.1 billion in 2025. More recently, in September 2025, 2,100 team members volunteered 7,940 hours during Better Together Days.

The ongoing strategic expansion for digital and GenAI-powered operations transformation relies heavily on Infosys. This relationship, which started back in 2020, was strategically deepened in late 2024. The goal is to modernize the digital landscape using a highly efficient, self-funding model, leveraging Infosys Topaz for automation and Generative AI integration. While specific 2025 revenue share isn't public, the focus is on driving efficiency gains that offset investment costs.

For specialized digital tools, Old National Bancorp engages with various Financial Technology (FinTech) Providers. The bank also established an internal Transformation Factory in 2023, focused on process improvement and automation, which complements external tech integrations. You won't see a single dollar amount tied to all FinTechs, but the introduction of a new small business digital banking platform in 2024 shows active integration of specialized capabilities.

Here's a quick look at the scale these key partnerships bring:

The bank's efficiency ratio improved to an adjusted 48.1% in Q3 2025, partly reflecting the operational streamlining from these key external relationships, especially following the Bremer systems conversion.

Finance: draft Q4 2025 partnership impact analysis by next Tuesday.

Old National Bancorp (ONB) - Canvas Business Model: Key Activities

You're looking at the core engine driving Old National Bancorp's performance as of late 2025, right after the major Bremer integration steps. Honestly, the key activities are all about managing the scale gained from that merger while keeping the relationship focus intact.

Commercial and Consumer Lending: Managing a $48.0 billion loan portfolio

The primary activity here is managing and growing the loan book, which hit $48.0 billion in period-end total loans for the third quarter of 2025. That figure includes the Bremer contribution, but organically, excluding those acquired loans, the portfolio was up 3.1% annualized. You see the engine running in the commercial side; total commercial loan production in Q3 2025 reached $2.8 billion, a strong 20% jump from the second quarter.

Here's a quick look at the lending focus as of the end of Q3 2025:

The bank is definitely focused on disciplined growth, keeping an eye on credit quality with net charge-offs at 25 bps of average loans in Q3 2025.

Core Deposit Gathering: Maintaining a low-cost, granular deposit franchise

This activity is crucial for funding that loan book cheaply. Old National Bancorp successfully grew its core deposits, which were up 5.8% annualized in Q3 2025. Period-end total deposits reached $55.0 billion, showing a 4.8% annualized increase. The cost of those total deposits was managed down to 197 bps.

The balance sheet structure shows this focus:

• Period-end Total Deposits: $55.0 billion
• Core Deposits Growth (Annualized): 5.8%
• Total Deposit Costs: 197 bps
• Loan to Deposit Ratio: 87%

You want to see that loan-to-deposit ratio stay under control; 87% gives them strong liquidity headroom, so that's a good position to be in.

Merger Integration: Finalizing operational synergies post-Bremer partnership

The major activity here is the final push on the Bremer Financial Corporation partnership, which closed on May 1, 2025. The systems conversion was targeted for mid-October 2025, meaning late 2025 is all about locking in those operational synergies. The combined entity already showed up with approximately $70 billion in assets and $37 billion in assets under management on a pro forma basis as of March 31, 2025.

Key integration metrics include:

• Merger Close Date: May 1, 2025
• Systems Conversion Target: Mid-October 2025
• Q3 2025 Merger-Related Charges (Pre-tax): $69.3 million
• Increased Community Growth Plan Commitment: $1.6 billion added, totaling $11.1 billion

Note that the Bremer Investments (Raymond James) accounts are scheduled for a later transition in November 2025, so that's a near-term task to watch.

Wealth Management and Capital Markets Services: Expanding fee-based businesses

Old National Bancorp is actively working to grow its non-interest income streams, which includes wealth management and capital markets. In Q2 2025, noninterest income saw an 18.8% increase, specifically driven by higher wealth fees, mortgage fees, and capital markets revenue. The wealth management arm, 1834, is expanding its footprint, now including offices in Naples, Fla., alongside its Midwest locations.

The scale of the fee-based business is substantial:

The CEO specifically called out expanding these fee-based businesses as a key focus during the Q2 2025 results discussion.

Digital Platform Development: Enhancing the small business digital banking platform

A concrete action was the introduction of a new small business digital banking platform back in 2024, featuring modern money movement and business management tools. Following the Bremer merger, the transition for those clients was set in motion, with access to the Small Business Digital Banking platform beginning on October 20, 2025.

You need to make sure your small business clients know this deadline:

• New Small Business Platform Introduced: 2024
• Bremer Small Business Transition Start Date: October 20, 2025
• Mandatory Login/Acceptance Deadline: December 15, 2025

If they don't log in by December 15, 2025, they risk losing access to Bill Pay and eStatement services, so that's a definite action item for operations.

Old National Bancorp (ONB) - Canvas Business Model: Key Resources

You're looking at the hard assets Old National Bancorp (ONB) relies on to execute its business strategy as of late 2025. These aren't abstract concepts; they are the balance sheet strength and operational footprint that back every client interaction.

Financial Capital

The sheer size of the balance sheet is a primary resource, especially following the integration of Bremer Financial Corporation. This scale allows Old National Bancorp to compete effectively against larger regional players.

Strong Capital Position

Regulatory capital strength provides a buffer and flexibility for growth, share repurchases, and absorbing potential credit shocks. The ratios reflect a disciplined approach to balance sheet management.

• Preliminary regulatory Tier 1 Common Equity to risk-weighted assets ratio: 11.02% (as of Q3 2025)
• Return on Average Tangible Common Equity (Adjusted): 20.1% (as of Q3 2025)
• Loan to Deposit Ratio: 87% (as of Q3 2025)

Human Capital

The people are the delivery mechanism for the relationship-focused value proposition. This includes both the experienced executive team and the frontline staff.

• Full-time equivalent employees: 4,066 (as of Q4 2024 data)
• Key Leadership includes Chairman and CEO James 'Jim' Ryan and COO Jeff C. Newcom.
• The bank actively welcomed impactful new client relationship managers and key support leaders throughout 2024.

Physical Network

The physical footprint is concentrated in the Midwest and Southeast, significantly expanded by recent partnerships. This network supports the relationship banking model.

• Number of Banking Centers: 280 (as of Q4 2024 baseline)
• Locations span states including Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Tennessee, and Wisconsin.
• The CapStar partnership added 23 banking centers (finalized April 1, 2024).
• The Bremer partnership added 70 branches (as of December 31, 2024).

Technology

Technology underpins efficiency and modern client service delivery, moving beyond basic online access to integrated business tools.

Old National Bancorp uses its core banking systems and has invested in platforms that offer modern capabilities.

• Launched a new small business digital banking platform in 2024.
• Digital features include online banking, mobile banking, mobile deposit, and Zelle integration.
• The Chief Information Officer has emphasized the critical role of technology in transforming traditional banking operations for a simpler, safer experience.

Finance: draft 13-week cash view by Friday.

Old National Bancorp (ONB) - Canvas Business Model: Value Propositions

You're looking at the core reasons clients choose Old National Bancorp. It's not just about having an account; it's about the stability and performance backing that relationship.

Full-Service Regional Banking: Comprehensive commercial, consumer, and agricultural services

Old National Bancorp provides a full spectrum of financial services across its footprint. This is evidenced by strong activity in key lending areas. For instance, commercial loan production in the third quarter of 2025 hit $2.8 billion, showing active engagement with business clients. The bank's offerings include loans, deposits, and investment products, positioning it as a comprehensive financial resource. Furthermore, the successful integration of Bremer Bank has expanded this service delivery capability.

Financial Stability: Strong liquidity with an 87% loan-to-deposit ratio

A key value proposition is the bank's strong liquidity position, which directly translates to client confidence. As of the third quarter of 2025, Old National Bancorp maintained a loan-to-deposit ratio of 87%. This ratio, supported by period-end total deposits of $55.0 billion, indicates prudent balance sheet management. This stability is further reinforced by a core deposit franchise that grew at an annualized rate of 5.8% in Q3 2025.

Wealth Management: Offering comprehensive wealth and investment solutions

The bank's commitment extends beyond traditional lending and deposits into managing client assets. The services offered include investment products, which is a standard component of a full-service regional bank model. The successful integration of Bremer Bank brought in additional specialty products and Wealth and Investment services to the combined entity. The bank's focus on a low-cost deposit base helps fund these higher-value activities.

High Profitability: Adjusted Return on Average Tangible Common Equity of 20.1% (Q3 2025)

Operational efficiency and profitability are central to the value Old National Bancorp delivers to its shareholders, which underpins its ability to serve clients long-term. For the third quarter of 2025, the adjusted Return on Average Tangible Common Equity (ROATCE) reached 20.1%. This strong profitability is paired with an adjusted efficiency ratio of 48.1% for the same period. This means the bank is generating significant returns relative to its equity base while keeping operating costs well-controlled.

Trusted Partner: Long-term, relationship-based client focus since 1834

Old National Bancorp emphasizes being a primary, trusted partner to its clients, supported by a strong credit culture. This relationship focus is reflected in the quality of its loan book. Nonaccrual loans stood at 1.23% of total loans in Q3 2025, demonstrating resilient credit quality. Also, the bank reported annualized core deposit growth of 5.8%, which speaks directly to the strength of its client relationships and its ability to gather low-cost funding.

Here's a quick look at the key financial metrics supporting these value propositions from the Q3 2025 results:

The value proposition is also built on the breadth of its operations, which you can see in the revenue drivers:

• Net Interest Margin (Fully Taxable Equivalent Basis): 3.64%
• Commercial Loan Production: $2.8 billion (Q3 2025)
• Core Deposit Growth (Annualized): 5.8% (Q3 2025)
• Total Loans (Period-End): $48.0 billion (Q3 2025)

The bank is definitely focused on top-quartile performance, which is what clients expect from a stable regional partner.

Old National Bancorp (ONB) - Canvas Business Model: Customer Relationships

You're looking at how Old National Bancorp (ONB) builds and maintains its connections with clients and the communities it serves as of late 2025. The core philosophy centers on deep, lasting ties, blending high-touch personal service with modern digital access.

Relationship Banking Model: Focus on long-term, highly valued partnerships

Old National Bancorp focuses on building long-term, highly valued partnerships with clients across its consumer, commercial, and wealth segments. This approach is a hallmark of the institution, tracing its roots back to 1834. The bank, as of Q2 2025, managed approximately $71 billion of assets and held $38 billion of assets under management. This scale, positioning Old National Bancorp among the top 25 banking companies headquartered in the United States, is meant to support these deep relationships.

Dedicated Advisors: High-touch service for commercial and wealth clients

For commercial and higher-net-worth clients, Old National Bancorp deploys dedicated expertise through its wealth management division, 1834, a division of Old National Bank, and Old National Wealth Advisors (ONWA). This structure provides a boutique-style experience, which you can see in the dedicated staffing numbers for wealth services.

• ONWA comprises approximately 125 team members.
• This team includes more than 70 wealth advisors located across the Midwest and Southeast footprint.
• 1834, which caters to higher-net-worth clients, has expanded its physical presence to include Naples, Florida, alongside existing markets like Nashville and Scottsdale.

The professionals at ONWA offer integrated services including Wealth Planning, Investment Management, and Estate Planning & Administration.

Digital Self-Service: Providing seamless self-service options via mobile/web

To complement the high-touch service, Old National Bancorp continues to invest in technology to make banking simpler and more accessible. The Chief Information Officer discussed how technological advancements are transforming traditional banking operations for a more streamlined and secure experience. This digital push is evident in the platform enhancements made in 2024.

• Old National introduced a new small business digital banking platform in 2024.
• This platform includes modern money movement capabilities and comprehensive business management tools.
• The bank offers seamless self-service options alongside assisted service channels.
• The Investment Strategies Team of ONWA specifically caters to clients who desire a self-service approach to online investing.

Community Engagement: Local presence and community investment

Community investment and engagement are central to Old National Bancorp's stated values, evidenced by its commitment figures and external recognition. The bank was named one of The Civic 50 by Points of Light for the second consecutive year in 2025, an honor reserved for the 50 most community-minded companies in the nation.

Here's a look at the concrete community investment metrics, primarily reflecting 2024 activity and forward-looking commitments:

The commitment to the communities acquired through the Bremer Bank partnership includes a pledge to invest approximately $179 million in loans and investments within that footprint by 2028, representing a 60% increase over Bremer Bank baselines.

Old National Bancorp (ONB) - Canvas Business Model: Channels

You're looking at how Old National Bancorp moves its services to the client base as of late 2025. It's a mix of the old school and the new, which is typical for a regional powerhouse that's been growing through acquisition.

Physical Branch Network: Traditional branches in the Midwest and Southeast

Old National Bancorp serves clients across Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Tennessee, and Wisconsin. The physical footprint saw significant expansion due to major partnerships finalized in 2024 and 2025. The bank celebrated 190 years of operation, starting in November 1834.

Here's a look at the physical network growth tied to recent strategic moves:

The total physical presence is now scaled up considerably in the Upper Midwest and Southeast regions. Still, the industry trend shows branch consolidation; for example, in 2018, Old National Bancorp trimmed its network by selling 10 branches in Wisconsin.

Digital Banking: Mobile app and online banking platforms

Old National Bancorp launched a new small business digital banking platform in 2024, focusing on modern money movement and self-service options. While specific Old National Bancorp adoption rates aren't public for late 2025, the broader US context shows this channel is dominant:

• Over 83% of U.S. adults used digital banking services as of 2025.
• Approximately 76% of U.S. adults use mobile banking apps.
• 39% of U.S. adults now rely exclusively on mobile banking.

The bank's Q2 2025 results show revenue from Debit card and ATM fees was reported as 12,922 (likely in thousands of USD, suggesting revenue of about $12.922 million for the quarter).

Commercial Relationship Managers: Direct sales force for commercial clients

The direct sales channel remains key for the commercial segment. Old National Bancorp has dedicated Relationship Managers who focus on local markets and industry expertise for clients needing term loans, lines of credit, and treasury management. James A. Sandgren serves as the Executive VP & CEO of Commercial Banking, indicating a structured leadership focus on this direct sales channel. These managers work to customize solutions, offering the personal touch alongside the resources of a premier institution.

ATMs and Contact Centers: Standard access and support infrastructure

For standard access, Old National Bancorp maintains its ATM infrastructure, which contributes to fee income. For support, the bank offers a centralized contact option. You can reach them by calling 800-731-2266.

The bank reported Q2 2025 net income applicable to common shares of $121.4 million, showing the operational scale supported by these varied channels.

Old National Bancorp (ONB) - Canvas Business Model: Customer Segments

Old National Bancorp serves a diversified client base across its footprint, significantly enhanced by the integration of Bremer Financial Corporation, which closed on May 1, 2025.

Commercial Clients: Businesses driving strong commercial loan production

This segment is a key driver of loan growth for Old National Bancorp.

Growth in core deposits is specifically noted as being driven by both existing and new commercial clients.

Retail/Consumer Customers: Individuals seeking deposit and loan products

This segment contributes to the bank's granular, low-cost deposit franchise.

• Period-end total deposits reached $55.0 billion as of Q3 2025.
• Core deposits showed an annualized increase of 5.8%.
• Total deposit costs were 197 bps.

High-Net-Worth Individuals: Clients utilizing wealth management services

Wealth management services are delivered through several models, including 1834, which is tailored for high-net-worth clients.

The wealth division, now Old National Wealth Advisors (ONWA), also includes the Investment Strategies Team and Private Wealth Management.

Agricultural Businesses: Specialized segment from the Bremer partnership

The partnership with Bremer Financial Corporation brought a strong commercial and agricultural focus to Old National Bancorp, expanding its reach into the Upper Midwest.

• Bremer Bank offered full-service, relationship-based banking with a strong agricultural focus.
• Bremer Wealth accounts transition to the Old National Wealth Management technology platform in February 2026.

Old National Bancorp (ONB) - Canvas Business Model: Cost Structure

You're looking at the core expenses Old National Bancorp (ONB) is managing as of late 2025, especially following the integration of the Bremer Bank partnership. The cost structure is heavily influenced by funding costs and the expenses associated with that recent expansion.

Interest Expense: Cost of total deposits at 1.97% in Q3 2025

The cost associated with funding operations through deposits was a key metric in the third quarter of 2025. Old National Bancorp reported that the total cost of deposits was 197 bps for Q3 2025. This figure represents the interest paid on the total deposit base, which stood at $55.0 billion at the end of the third quarter of 2025. This cost was up 4 bps from the prior quarter, reflecting the general rate environment.

Merger-Related Expenses: Pre-tax charges of $69.3 million in Q3 2025

The ongoing integration costs from the Bremer partnership are clearly visible in the reported figures. For the third quarter of 2025, Old National Bancorp recorded pre-tax charges of $69.3 million specifically for merger-related expenses. This charge is excluded when calculating adjusted noninterest expense to show core operating performance. The total reported noninterest expense for Q3 2025 was $445.7 million, which included this significant charge.

Personnel Costs and Technology and Data Processing: Operating Expenses

Personnel costs, covering salaries and benefits for the expanded workforce, and technology investments are embedded within the noninterest expense structure. To get a clearer view of the run-rate costs, we look at the adjusted noninterest expense, which strips out the merger charges and other one-time items. For Q3 2025, the adjusted noninterest expense was $376.5 million. This was higher than the $343.6 million reported for Q2 2025, which the company attributed to the full quarter impact of Bremer, suggesting higher ongoing personnel and operating costs from the expanded footprint. The Chief Information Officer has emphasized the critical role technology plays in transforming operations, building on prior investments like the new small business digital banking platform introduced in 2024.

Here's a quick look at the key expense and funding cost drivers for Q3 2025:

The disciplined expense management is reflected in the efficiency ratio improving to 48.1% on an adjusted basis for Q3 2025.

The bank is definitely focused on keeping funding costs tight while absorbing the higher operating costs of the new structure. Finance: draft 13-week cash view by Friday.

Old National Bancorp (ONB) - Canvas Business Model: Revenue Streams

You're looking at how Old National Bancorp actually brings in the money, which for a bank like this, boils down to two main buckets: interest earned and fees collected. Honestly, the interest side is the engine room.

Net Interest Income (NII) is the core driver. For the third quarter of 2025, Old National Bancorp reported NII on a fully taxable equivalent (FTE) basis of $582.6 million. This number reflects the difference between the interest earned on their assets, like loans, and the interest paid out on their liabilities, like deposits. The net interest margin (NIM) for that quarter improved to 3.64% on an FTE basis, up 11 basis points from the prior quarter, helped by higher asset yields.

The biggest component feeding that NII is the lending business. You're looking at income generated from the total loan portfolio, which stood at period-end $48.0 billion as of the end of Q3 2025. This portfolio includes both commercial and consumer loans, and the growth in that loan book, excluding loans acquired in the Bremer transaction, was up 3.1% annualized for the quarter.

Next up is Noninterest Income, which is the fee-based revenue stream. This shows the bank successfully diversifying away from pure lending income. For Q3 2025, total noninterest income was reported around $130.5 million. This revenue stream gets its power from capital markets and wealth management activities, plus standard banking fees. It's defintely a key area for profitability, especially with the full quarter impact of the Bremer partnership showing through.

Here's a quick look at the components that make up that fee-based revenue for the third quarter of 2025, based on adjusted figures:

The Service Charges and Fees are a specific part of that noninterest income, representing the day-to-day transaction revenue you'd expect from a retail and commercial bank. The bank fees component, which covers these standard transaction fees, contributed $41 million to the adjusted noninterest income for the quarter. This shows the value of maintaining a broad client base for routine banking services.

To be fair, you should keep an eye on the mix of these revenue sources. For context, looking back over the last five years, net interest income made up about 78.5% of Old National Bancorp's total revenue, underscoring the primary importance of their lending operations.

The key fee-based revenue streams contributing to Noninterest Income include:

• Wealth Management Fees: $40 million in Q3 2025.
• Bank Fees (Transaction/Service): $41 million in Q3 2025.
• Capital Markets Revenue: $13 million in Q3 2025.
• Mortgage Fees: $10 million in Q3 2025.

Finance: draft Q4 2025 revenue projection based on Q3 performance by next Tuesday.