Old National Bancorp is implementing strategic changes following its acquisition of Bremer Bank, announcing the divestiture of its Bremer Insurance Agencies subsidiary to Arthur J. Gallagher & Co. and confirming the elimination of 244 positions within the Twin Cities region. These operational adjustments represent key components of the company’s post-acquisition integration strategy.
The insurance brokerage sale was finalized yesterday, though financial terms of the transaction remain undisclosed. Simultaneously, the financial institution disclosed workforce reductions affecting a service center in Lake Elmo. The layoffs will commence in October or November, with the complete implementation extending through the end of 2026.
Affected positions encompass various functional areas including:
* Accounting personnel
* Loan processing specialists
* Financial analysts
* Customer support representatives
Despite these workforce reductions, Old National Bancorp will retain more than 900 former Bremer employees. These cost-cutting initiatives were previously outlined as part of the Bremer acquisition integration, projected to deliver approximately $111 million in pre-tax savings. The company anticipates realizing a quarter of these savings within the current fiscal year.
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CEO Jim Ryan addressed these strategic developments during his presentation at the Barclays Global Financial Services Conference in New York yesterday. The executive outlined the institution’s direction as it consolidates its market position. With $71 billion in total assets and an additional $38 billion under management, Old National Bancorp maintains its status as the sixth-largest commercial bank in the Midwest.
These operational changes raise important questions regarding the bank’s ability to maintain its recent performance momentum. Old National exceeded analyst expectations in the second quarter, reporting adjusted earnings per share of $0.53.
Market observers will closely monitor the upcoming quarterly results scheduled for October 28th to assess whether these strategic decisions are yielding financial benefits. Analyst consensus currently indicates a “Moderate Buy” rating with an average price target of $26.40. The stock concluded yesterday’s trading session at $22.30 per share.
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