Profile: Old National Bancorp (ONB.OQ)
12 Mar 2014
Old National Bancorp (Old National), incorporated on June 19, 1982, is a financial holding company. The Company, through its wholly owned banking subsidiary Old National Bank (Old National Bank), provide a range of services, including commercial and consumer loan and depository services, investment and brokerage services, lease financing and other traditional banking services. Through its non-bank affiliates, it provides services to supplement the banking business, including fiduciary and wealth management services, insurance and other financial services. It provides financial services in Indiana, eastern and southeastern Illinois, and central and western Kentucky. It operates in two segments: community banking and treasury. On September 15, 2012, it merged with Indiana Community Bancorp of Columbus, Indiana. Effective September 15, 2012, the merger of Indiana Bank and Trust Company, Indiana Community Bancorp's banking subsidiary, into Old National Bank, the banking subsidiary of Old National Bancorp was completed. In October 2012, Old National Bancorp announced that it has completed its merger with Indiana Community Bancorp.
Community Banking Segment
The community banking segment operates through Old National Bank. The community banking segment provides products and services, that address clients’ needs. Its financial centers focus on convenience factors, such as location, space for private consultations and quick client access to routine transactions. As of December 31, 2012, Old National Bank operated 180 banking financial centers located in Indiana, Illinois, and Kentucky. The community banking segment consists of lending and depository activities along with merchant cash management, Internet banking and other services relating to the general banking business. In addition, the community banking segment includes Indiana Old National Insurance Company (IONIC), which reinsures credit life insurance. IONIC also provides property and casualty insurance for Old National and reinsures the coverage with non-affiliated carriers.
The Company earns interest income on loans, as well as fee income from the origination of loans. Lending activities include loans to individuals, which consist of home equity lines of credit, residential real estate loans and consumer loans, and loans to commercial clients, which include commercial loans, commercial real estate loans, letters of credit and lease financing. Residential real estate loans are either kept in its loan portfolio or sold servicing released to secondary investors, with gains or losses from the sales being recognized. It pays interest on the interest-bearing deposits and receives service fee revenue on various accounts. Deposit accounts include products, such as non-interest-bearing demand, negotiable order of withdrawal (NOW), savings and money market, and time deposits. Debit and automated teller machine (ATM) cards provide clients with access to their accounts around-the-clock at any ATM location. It also provides around-the-clock telephone access and online banking, as well as other electronic banking services. The Company, through a registered third party broker-dealer, provides clients with convenient and professional investment services and a range of brokerage products. This line of business offers a range of investment options and investment advice to its clients.
Treasury manages investments, wholesale funding, interest rate risk, liquidity and leverage for Old National. Treasury also provides capital markets products, including interest rate derivatives, foreign exchange and industrial revenue bond financing for its commercial clients.
The Company's other business includes includes Wealth Management and Insurance Agency Services. Wealth management includes fiduciary and trust services targeted at high-net-worth individuals and are offered through an affiliate trust company under the business name of Old National Trust Company. As of December 31, 2012, total assets under management by Old National’s Wealth Management division were approximately $4.4 billion. Through its insurance agency subsidiaries, it offers full-service insurance brokerage services, including commercial property and casualty, surety, loss control services, employee benefits consulting and administration, and personal insurance. These subsidiaries are insurance agencies, which offer products that are issued and underwritten by various insurance companies not affiliated with it.
Old National Bancorp
ONE MAIN ST
EVANSVILLE IN 47708