EVANSVILLE, Ind., Nov. 18, 2025 (GLOBE NEWSWIRE) -- (NASDAQ: ONB) – During this season of giving, Old National Bank (ONB) is proud to announce its annual Client Appreciation Week, taking place during business hours November 17–22, 2025, across its entire banking footprint. This weeklong celebration is a way to show appreciation to our clients, connect with our communities, and reflect ONB’s ongoing dedication to building strong relationships through personalized banking. Throughout the week, ONB banking cen ...

Core Insights - 1834, a division of Old National Bank, has expanded its operations into Naples, Florida, to cater to the financial needs of high and ultra-high net-worth individuals and institutions in the region [1][2] - The Naples team is led by Jeff Robinson, who has over 20 years of experience in wealth management, focusing on delivering integrated wealth management services [2][3] - 1834 offers a boutique-style experience with customized wealth advisory and investment management services, competing with ultra-high-net-worth firms without requiring high entry fees [3][4] Company Overview - 1834 is supported by a team of industry-renowned executives with over 80 years of combined experience, and the firm has more than 100 team members across various locations [4][8] - The service model includes a single point of contact with a wealth advisor, complemented by a team of in-house professionals providing various services such as wealth planning, investment management, and estate planning [5][6] Team Composition - The Naples team includes experienced professionals such as Rick Sterioti, Jolene Wall, and Eric Cosentino, each bringing decades of expertise in wealth management and investment [6][7] - The team focuses on providing holistic advice tailored to the needs of high-net-worth individuals, including specialized services for business succession planning and philanthropy [5][6] Parent Company Information - Old National Bancorp, the parent company of 1834, is the sixth largest commercial bank headquartered in the Midwest, with approximately $71 billion in assets and $38 billion in assets under management [8]

Core Points - Old National Bancorp has been designated as a 2026 Military Friendly Employer, highlighting its commitment to supporting veterans and military employees [1][4] - The evaluation for the Military Friendly Employers designation involved over 1,200 companies and was based on a proprietary survey and public data [2] - Old National's Military Veteran's Impact Network (MVIN) plays a significant role in fostering a supportive culture for military team members [3] Company Overview - Old National Bancorp is the holding company for Old National Bank, the sixth largest commercial bank in the Midwest, with approximately $71 billion in assets and $38 billion in assets under management [6] - The bank focuses on building long-term partnerships with clients and has been recognized as one of "The Civic 50," which honors the 50 most community-minded companies in the U.S. [6]

Financial Performance - Net interest income for Q3 2025 was $574,609,000, an increase of 11.6% compared to $514,790,000 in Q2 2025[188] - Net income available to common shareholders rose to $178,533,000 in Q3 2025, up 47% from $121,375,000 in Q2 2025[188] - Noninterest income increased by 38% to $356,772 compared to $258,931 in 2024[190] - Net income available to common shareholders reached $440,533, reflecting a 18% increase from $373,214 in 2024[190] - Net interest income rose by $59.8 million to $574.6 million compared to the second quarter of 2025, driven by the full quarter impact of Bremer and higher asset yields[206] - Noninterest income for the third quarter of 2025 was $130.5 million, reflecting an increase of 38.6% compared to $94.1 million in the same quarter of 2024[213] - Net interest income increased to $184.7 million for the three months ended September 30, 2025, up by $60.5 million year-over-year, and $342.1 million for the nine months, an increase of $126.9 million[226] Loan and Deposit Growth - Total loans increased to $47,967,915,000 in Q3 2025, compared to $47,902,819,000 in Q2 2025, reflecting growth in lending activities[188] - Total loans grew to $47,967,915, a significant increase of 32% from $36,400,643 in 2024[190] - Total deposits reached $55,006,184,000 in Q3 2025, up from $54,357,683,000 in Q2 2025, showing strong customer retention and acquisition[188] - Total deposits rose to $55,006,184, marking a 35% increase from $40,845,746 in 2024[190] - Total deposits increased by $648.5 million, or 5% annualized, to $55.0 billion at September 30, 2025 compared to June 30, 2025[205] - Total deposits reached $55.0 billion, an increase of $14.2 billion or 34.7% from December 31, 2024, attributed to Bremer deposits and organic growth[265] Credit Quality and Loss Provisions - Provision for credit losses decreased to $26,738,000 in Q3 2025 from $106,835,000 in Q2 2025, indicating improved credit quality[188] - Provision for credit losses rose to $164,976, up 97% from $83,602 in the previous year[190] - Provision for credit losses was $26.7 million in the third quarter of 2025, with a significant increase in the year-to-date provision to $165.0 million compared to $83.6 million in 2024[213] - The allowance for credit losses on loans was $566,102 thousand as of September 30, 2025, up from $366,667 thousand in the previous year[220] - The allowance for credit losses on loans was $572.2 million at September 30, 2025, up from $392.5 million at December 31, 2024, reflecting $103.5 million of allowance for credit losses on acquired PCD loans[283] Efficiency and Operational Metrics - Return on average assets improved to 1.03% in Q3 2025, compared to 0.77% in Q2 2025, indicating enhanced operational efficiency[188] - The efficiency ratio for Q3 2025 was 58.84%, a slight increase from 55.80% in Q2 2025, suggesting a need for cost management[188] - The efficiency ratio was reported at 56.43%, slightly up from 56.37% in the previous year[190] - Noninterest expense for the three months ended September 30, 2025, was $445.7 million, a 63.7% increase from $272.3 million in the same period of 2024[240] - Total noninterest expense for the nine months ended September 30, 2025, reached $1.1 billion, up 34.4% from $817.6 million in 2024[241] Capital and Equity - The Tier 1 common equity ratio was 11.02% in Q3 2025, up from 10.74% in Q2 2025, reflecting a stronger capital position[188] - Shareholders' equity increased to $8,168,575 thousand in September 2025, compared to $6,190,071 thousand in September 2024, indicating a growth of 32%[220] - Shareholders' equity increased to $8.3 billion at September 30, 2025, up from $6.3 billion at December 31, 2024, due to the issuance of 50.2 million shares related to the Bremer acquisition[267] Acquisition Impact - The acquisition of Bremer Financial Corporation was completed on May 1, 2025, with a total consideration of $1.3 billion, including 50.2 million shares of Old National common stock and $314.6 million in cash[212] - Average loans increased by $11.9 billion for the three months and $7.7 billion for the nine months ended September 30, 2025, primarily due to the acquisition of Bremer loans totaling $11.2 billion[232] - Other income increased by $6.1 million for the three months and $38.1 million for the nine months ended September 30, 2025, driven by the acquisition of Bremer and a $21.0 million gain from the Bremer pension plan[239] Risk Management and Liquidity - The company performs stress testing periodically to ensure sufficient capital to continue operations during economic stress, evaluating decisions related to pricing, loan concentrations, and mergers[271] - The company has adopted a Risk Appetite Statement to assess and mitigate various risks, including credit, market, and liquidity risks[272] - Liquidity management strategies include maintaining strategic and contingency liquidity plans to ensure sufficient funding for balance sheet growth[296] - The company maintains significant liquidity, with access to $4,555,409,000 from the Federal Reserve discount window and $8,120,873,000 from the Federal Home Loan Bank[301] Projections and Future Outlook - Projected net interest income for September 30, 2025, is $4,716,381,000, reflecting a change of 0.20% from the base scenario[291] - Total interest income is expected to reach $9,079,196,000 by September 30, 2025, with a year-over-year increase driven by loan growth and asset repricing[293] - Projected interest expense for September 30, 2025, is $4,362,815,000, indicating a significant increase from previous periods[291]

Core Insights - Old National Bancorp (ONB) is a significant player in the Midwest financial services sector, offering a wide range of banking services and demonstrating consistent financial performance [1] Financial Performance - For the third quarter of 2025, ONB reported earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.56, resulting in a +5.36% earnings surprise [3] - The company's revenue for the quarter ending September 2025 was $713 million, which is 2.35% above the Zacks Consensus Estimate and a substantial increase from $492 million reported a year ago [4] - ONB's net income applicable to common shares for the third quarter was $178.5 million, with a diluted EPS of $0.46; on an adjusted basis, net income was $231.3 million, translating to a diluted EPS of $0.59 [5] Market Position - Cowen & Co. maintained a "Hold" rating for ONB, with the stock price at $21.05, and raised the price target from $25 to $26, indicating confidence in the company's financial trajectory [2] - The current stock price of ONB is $20.96, reflecting a slight decrease of 0.43%, with a market capitalization of approximately $8.21 billion [6]

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Financial Data and Key Metrics Changes - Old National Bancorp reported GAAP earnings per share of $0.46 for Q3 2025, with adjusted earnings per share of $0.59, reflecting an 11% increase from the prior quarter and a 28% increase year over year [7][12] - The company achieved a 20% return on average tangible common equity and a 1.3% return on assets, with an efficiency ratio below 50% [3][5] - The CET1 ratio increased by 28 basis points to over 11%, and tangible book value per share grew by 4% from Q2 and 10% year over year [7][15] Business Line Data and Key Metrics Changes - Total loans grew 3.1% annualized from the previous quarter, with production up 20% from the prior quarter [8][9] - Adjusted non-interest income was $130 million for the quarter, exceeding guidance, driven by strong performance in capital markets [12][18] - Adjusted non-interest expenses were $376 million, reflecting a full quarter impact of Bremer operations, with a low efficiency ratio of 48% [13][19] Market Data and Key Metrics Changes - Total deposits increased by 4.8% annualized, with core deposits (excluding brokered) increasing by 5.8% annualized [10][11] - Non-interest bearing deposits remained at 24% of core deposits, and brokered deposits decreased modestly [10][11] - The company achieved an approximate 85% beta on its exception price book spot rate in conjunction with the Fed rate cut in September [11] Company Strategy and Development Direction - The company is focused on organic growth and returning capital to shareholders, emphasizing that the best acquisition is itself [5][25] - Management is strategically recruiting top-tier talent and investing in future growth opportunities while enhancing efficiency [4][6] - The company aims to leverage its leading market position and capitalize on market disruptions [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit outlook, noting a decline in criticized and classified loans and stable credit metrics [15][19] - The company anticipates continued success in executing its deposit strategy and expects to meet or exceed industry growth in 2025 [18][19] - Management highlighted that the systems conversion for the Bremer Bank partnership was successful, with positive client sentiment and operational efficiency [36][38] Other Important Information - The company repurchased 1.1 million shares late in the quarter, reflecting confidence in capital levels and the trajectory of the business [16][102] - The full run-rate cost savings from the Bremer acquisition are expected to materialize in Q1 of the following year [95][96] Q&A Session Summary Question: What drove the reduction in NII expectations for the fourth quarter? - Management indicated that the reduction from $590 million to $585 million is minor relative to the overall balance sheet size and reflects stable dynamics [22][23] Question: What are the preferred uses for capital moving forward? - Management emphasized organic growth as the primary focus, with opportunistic buybacks based on capital generation [24][25] Question: How did the systems conversion go? - Management reported that the systems conversion was the best to date, with high client satisfaction and minimal issues [36][38] Question: What is the outlook for loan growth from Bremer? - Management expects consolidated loan growth to align with overall company growth, with no significant swings anticipated [70][73] Question: How does the company view the credit environment? - Management described the credit outlook as stable to improving, with a focus on active portfolio management [97][99]

Financial Data and Key Metrics Changes - The company reported GAAP earnings per share of $0.46 for Q3 2025, with adjusted earnings per share of $0.59, reflecting an 11% increase from the prior quarter and a 28% increase year-over-year [7][12] - The adjusted return on average tangible common equity was 20%, and return on assets was 1.3%, with an efficiency ratio below 50% [3][5] - The CET1 ratio increased by 28 basis points to over 11%, and tangible book value per share grew by 4% from Q2 and 10% year-over-year [7][15] Business Line Data and Key Metrics Changes - Total loans grew 3.1% annualized from the previous quarter, with production up 20% from the prior quarter [9][10] - Adjusted non-interest income was $130 million for the quarter, exceeding guidance, driven by strong performance in capital markets [12][18] - Adjusted non-interest expenses were $376 million, reflecting a full quarter impact of Bremer operations, with a low efficiency ratio of 48% [13][19] Market Data and Key Metrics Changes - Total deposits increased by 4.8% annualized, with core deposits (excluding brokered) increasing by 5.8% [10][11] - Non-interest bearing deposits remained at 24% of core deposits, and brokered deposits decreased to 5.8% of total deposits, below peer levels [10][11] - The company achieved an approximate 85% beta on its exception price book spot rate in conjunction with the Fed rate cut in September [11] Company Strategy and Development Direction - The company is focused on organic growth and returning capital to shareholders, emphasizing that the best acquisition is itself [5][25] - Management is strategically recruiting top-tier talent and investing in efficiency improvements while maintaining a strong capital position [4][5] - The company aims to leverage its leading market position and is not pursuing new partnerships, focusing instead on enhancing its existing operations [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit outlook, noting a decline in criticized and classified loans and stable credit metrics [15][19] - The company anticipates continued success in deposit strategy and expects to meet or exceed industry growth in 2025 [18][19] - Management highlighted that the systems conversion for the Bremer partnership was successful, with positive client sentiment and operational efficiency [36][38] Other Important Information - The company repurchased 1.1 million shares late in the quarter, reflecting confidence in capital levels and a commitment to returning capital to shareholders [5][16] - The company expects to see cost savings from the Bremer integration materialize in Q1 of the following year, with a focus on ongoing efficiency improvements [19][96] Q&A Session Summary Question: What drove the reduction in NII expectations for the fourth quarter? - Management indicated that the reduction from $590 million to $585 million is minor given the size of the balance sheet, attributing it to slight changes in market conditions [22][23] Question: What are the preferred uses for capital moving forward? - Management emphasized organic growth as the primary focus, with opportunistic buybacks based on capital levels and market conditions [25][26] Question: How did the systems conversion go? - Management reported that the systems conversion was the best they have ever done, with high client satisfaction and minimal issues [36][38] Question: What is the outlook for loan growth and deposits from the Bremer acquisition? - Management expects consolidated loan growth to align with overall company growth, with Bremer contributing positively to both loan and deposit growth [70][73] Question: How does the company view the current credit environment? - Management described the credit environment as stable, with a focus on active portfolio management and monitoring to avoid surprises [97][99]

Financial Data and Key Metrics Changes - The company reported an adjusted return on average tangible common equity of 20% and a return on assets (ROA) of 1.3% for Q3 2025, with an efficiency ratio below 50% [3][10] - Adjusted earnings per share (EPS) for the quarter were $0.59, an 11% increase from the prior quarter and a 28% increase year over year [9][10] - Common equity tier 1 (CET1) capital increased by 28 basis points to over 11% despite merger-related charges [6][10] Business Line Data and Key Metrics Changes - Total loans grew 3.1% annualized from the previous quarter, with production up 20% from the prior quarter [11][12] - Adjusted noninterest income was $130 million for the quarter, exceeding guidance, driven by strong performance in capital markets [16][17] - Noninterest expenses were $376 million, reflecting a full quarter impact of Bremer operations, with a low efficiency ratio of 48% [17][20] Market Data and Key Metrics Changes - Total deposits increased by 4.8% annualized, with core deposits (excluding brokered) increasing by 5.8% [13][14] - Noninterest-bearing deposits remained at 24% of core deposits, with brokered deposits decreasing modestly [13][14] - The cost of total deposits increased by four basis points linked quarter, reflecting the full quarter impact of Bremer's cost of deposits [14] Company Strategy and Development Direction - The company is focused on organic growth and returning capital to shareholders, emphasizing that the best acquisition is itself [7][8] - Management is strategically recruiting top-tier talent and enhancing efficiency while investing in future growth opportunities [5][6] - The company aims to maintain a strong capital position while pursuing opportunities for growth in its existing markets [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit environment, stating that current credit issues are manageable and not indicative of larger problems [4][19] - The company anticipates stable to improving net interest income and net interest margin in 2025, driven by loan growth and asset repricing [22][23] - Management expects to meet or exceed industry growth in 2025, with a loan growth guidance of 4% to 5% excluding Bremer [23][24] Other Important Information - The company successfully completed the systems conversion and branding for the Bremer Bank partnership, which is expected to enhance growth opportunities [8][26] - The company repurchased 1,100,000 shares late in the quarter, reflecting confidence in its capital position [6][21] Q&A Session Summary Question: Insights on NII expectations for Q4 - Management indicated a slight reduction in NII expectations for Q4, attributing it to lower starting points and market dynamics [28][30] Question: Discussion on capital allocation and buybacks - Management confirmed a focus on organic growth as the primary use of capital, with opportunistic buybacks expected to continue [32][34] Question: Update on Bremer loan dynamics - Management clarified that loan sales were not significant, and any reductions in Bremer loans were part of normal attrition [41][42] Question: Credit environment outlook - Management described the credit environment as stable to improving, with a focus on active portfolio management [117][118] Question: Expectations for future hiring - Management confirmed plans to hire new talent to capitalize on market opportunities, emphasizing the importance of having the right team in place [50][51] Question: Bremer's impact on loan and deposit growth - Management expects Bremer to contribute positively to loan and deposit growth, aligning with overall company objectives [87][89]

Financial Data and Key Metrics Changes - Old National Bancorp reported GAAP earnings per share of $0.46 for Q3 2025, with adjusted earnings per share of $0.59, reflecting an 11% increase over the prior quarter and a 28% increase year over year [8][12] - The company achieved a 20% return on average tangible common equity and a 1.3% return on assets, with an efficiency ratio below 50% [3][8] - The CET1 ratio increased by 28 basis points to over 11%, and tangible book value per share grew by 4% from Q2 and 10% year over year [5][17] Business Line Data and Key Metrics Changes - Total loans grew 3.1% annualized from the previous quarter, with production up 20% from the prior quarter [9][10] - Adjusted non-interest income was $130 million for the quarter, exceeding guidance, driven by strong performance in capital markets [13][83] - Adjusted non-interest expenses were $376 million, reflecting a full quarter impact of Bremer operations, with a low efficiency ratio of 48% [15][88] Market Data and Key Metrics Changes - Total deposits increased by 4.8% annualized, with core deposits (excluding brokered) increasing by 5.8% annualized [11][12] - Non-interest bearing deposits remained at 24% of core deposits, and brokered deposits decreased modestly [11][12] - The cost of total deposits increased by four basis points, resulting in a spot rate of 1.86% on total deposits as of September 30 [12][18] Company Strategy and Development Direction - The company is focused on organic growth and returning capital to shareholders, emphasizing that the best acquisition is itself [5][25] - Old National Bancorp is leveraging its market position and investing in talent to enhance efficiency and effectiveness [4][5] - The company aims to maintain a strong capital position while pursuing growth opportunities, particularly in the wake of the Bremer Bank partnership [6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the credit outlook, noting a decline in criticized and classified loans and stable credit metrics [17][91] - The company anticipates continued success in deposit strategy and expects to meet or exceed industry growth in 2025 [19][20] - Management highlighted that the current economic environment presents opportunities for growth, particularly through talent acquisition [25][40] Other Important Information - The systems conversion and branding for the Bremer Bank partnership were successfully completed, with positive client sentiment reported [6][30] - The company repurchased 1.1 million shares late in the quarter, reflecting confidence in capital levels and future growth [5][96] - Management expects to realize cost savings from the Bremer integration in Q1 2026, with a full run-rate of approximately $115 million in annualized savings [88][89] Q&A Session Summary Question: Expectations for fourth quarter NII - Management noted a slight reduction in NII expectations for the fourth quarter, attributing it to stable dynamics and minor adjustments in the balance sheet [22][23] Question: Capital return strategy - Management emphasized that organic growth is the priority, but they remain opportunistic regarding share buybacks, with plans to assess capital return strategies post-Q4 [24][25] Question: Bremer loan dynamics - Management clarified that the loan sales and strategic portfolio management are normal, with no significant swings expected [28][29] Question: Systems conversion feedback - Management reported that the systems conversion was the best they have experienced, with high client engagement and satisfaction [30][31] Question: Loan growth guidance - Management confirmed that consolidated loan growth should align with overall growth expectations, with Bremer contributing positively [60][63] Question: Fee income trends - Management indicated that while fee income was strong this quarter, it is expected to normalize in the upcoming quarters [83][84]