3rd Quarter 2025 Financial Review October 22, 2025 Forward-Looking Statements These materials contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), Section 27A of the Securities Act of 1933 and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934 and Rule 3b-6 promulgated thereunder, notwithstanding that such statements are not specifically identified as such. In addition, certain statements may ...

Core Insights - Old National Bancorp (ONB) reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.56 per share, and showing an increase from $0.46 per share a year ago, resulting in an earnings surprise of +5.36% [1] - The company achieved revenues of $713.05 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.35% and significantly up from $492.01 million year-over-year [2] - Old National Bancorp has consistently surpassed consensus EPS estimates over the last four quarters [2] Earnings Outlook - The future performance of Old National Bancorp's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.60, with expected revenues of $711.38 million, and for the current fiscal year, the EPS estimate is $2.16 on revenues of $2.54 billion [7] Industry Context - The Banks - Midwest industry, to which Old National Bancorp belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Old National Bancorp's stock performance [5]

Financial Performance - Net income applicable to common shares for Q3 2025 was $178.5 million, with adjusted net income of $231.3 million, resulting in diluted EPS of $0.46 and adjusted EPS of $0.59[2][3] - Net income available to common shareholders for Q3 2025 was $178.5 million, up from $121.4 million in Q2 2025, a 47% increase[28] - Earnings per share (EPS) for Q3 2025 was $0.46, compared to $0.34 in Q2 2025, reflecting a 35.3% increase[28] - Adjusted EPS for the latest quarter was $0.59, up from $0.53 in the previous quarter, reflecting a 11.3% increase[44] - The company reported an ROAE of 9.0% for Q3 2025, compared to 6.7% in Q2 2025, indicating improved profitability[47] Revenue and Income - Net interest income on a fully taxable equivalent basis was $582.6 million, reflecting an increase driven by higher asset yields and the full quarter impact of Bremer[2][8] - Noninterest income for Q3 2025 was $130.5 million, slightly down from $132.5 million in Q2 2025[28] - Total revenue (FTE) for the quarter was $713,045 thousand, an increase from $654,370 thousand in the previous quarter, representing a 9.0% rise[45] - The company reported a total adjusted revenue of $713,038 thousand, compared to $633,410 thousand in the previous quarter, indicating a 12.6% increase[45] Loans and Deposits - Total loans at the end of the period were $48.0 billion, up 0.6% annualized, with a 3.1% increase when excluding loans acquired from Bremer[2][8] - Total loans reached $47.97 billion at the end of Q3 2025, compared to $47.90 billion at the end of Q2 2025[28] - Total deposits reached $55.0 billion, up 4.8% annualized, while core deposits increased by 5.8% annualized[2][8] - Total deposits rose to $55,006,184 thousand, compared to $54,357,683 thousand in the prior quarter, indicating an increase of 1.2%[31] Credit Quality - Provision for credit losses was $26.7 million, with net charge-offs of $30.0 million, representing 25 basis points of average loans[2][8] - Provision for credit losses decreased to $26.7 million in Q3 2025 from $106.8 million in Q2 2025, indicating improved credit quality[28] - The allowance for credit losses on loans increased to $572,178 thousand, up from $565,109 thousand in the previous quarter, reflecting a rise of 1.9%[31] - Nonaccrual loans stood at $590,820 thousand as of September 30, 2025, slightly down from $594,709 thousand in the previous quarter[40] Efficiency and Ratios - The efficiency ratio was 58.8%, while the adjusted efficiency ratio improved to 48.1%[2][15] - The efficiency ratio improved to 58.8% in Q3 2025 from 55.8% in Q2 2025, indicating better cost management[28] - Return on average tangible common equity (ROATCE) was 15.9%, with adjusted ROATCE at 20.1%[2][15] - The net interest margin improved to 3.64%, up 11 basis points from the previous quarter[2][8] Assets and Equity - Total assets increased to $71.21 billion in Q3 2025 from $70.98 billion in Q2 2025[28] - Total shareholders' equity increased to $8,309,271 thousand, compared to $8,126,387 thousand in the previous quarter, marking a growth of 2.2%[31] - The Tier 1 common equity ratio stood at 11.02% at the end of Q3 2025, up from 10.74% at the end of Q2 2025[29] - Average shareholders' common equity increased to $7,924,856,000 in Q3 2025 from $7,208,397,000 in Q2 2025, reflecting a 10% growth[47]

Core Insights - Old National Bancorp reported a net income applicable to common shares of $178.5 million for Q3 2025, with a diluted EPS of $0.46. Adjusted figures show a net income of $231.3 million and an adjusted EPS of $0.59 [1][4]. Financial Performance - Net interest income on a fully taxable equivalent basis reached $582.6 million, with a net interest margin (NIM) of 3.64%, reflecting an increase of 11 basis points [2][11]. - Pre-provision net revenue (PPNR) was reported at $267.3 million, with an adjusted PPNR of $336.6 million, marking a 16% increase [2]. - Noninterest income totaled $130.5 million, with organic growth and record capital markets revenue contributing to this figure [2][11]. Expenses and Efficiency - Noninterest expenses were $445.7 million, including $69.3 million in merger-related charges. Adjusted noninterest expenses were $376.5 million [2][11]. - The efficiency ratio stood at 58.8%, while the adjusted efficiency ratio was 48.1%, indicating improved operational efficiency [2][11]. Deposits and Loans - Total deposits at the end of the period were $55.0 billion, reflecting a 4.8% annualized growth, with core deposits increasing by 5.8% [2][11]. - Total loans amounted to $48.0 billion, with a 0.6% annualized increase. Excluding loans acquired from Bremer, total loans grew by 3.1% [2][11]. Credit Quality - The provision for credit losses was $26.7 million, with net charge-offs of $30.0 million, representing 25 basis points of average loans [2][11]. - 30+ day delinquencies were at 0.18%, and nonaccrual loans accounted for 1.23% of total loans, indicating resilient credit quality [2][11]. Capital Position - Return on average tangible common equity (ROATCE) was reported at 15.9%, with an adjusted ROATCE of 20.1% [2]. - Preliminary regulatory Tier 1 common equity to risk-weighted assets was 11.02%, up 28 basis points [2][11].

Core Points - Old National Bancorp's Chairman and CEO, James "Jim" C. Ryan III, has been appointed Vice Chair of the American Bankers Association (ABA) [1][4] - Jim Ryan has been with Old National Bancorp since 2005 and has held various leadership roles, including CFO and Director of Corporate Development [2] - Old National Bancorp is the sixth largest commercial bank in the Midwest, with approximately $71 billion in assets and $38 billion in assets under management [6] Company Overview - Old National Bancorp serves clients primarily in the Midwest and Southeast, focusing on long-term partnerships and community support [6] - The company offers a range of services, including consumer and commercial banking, wealth management, and capital markets services [6] - In 2025, Old National was recognized as one of "The Civic 50," highlighting its commitment to community engagement [6] Leadership and Industry Impact - Jim Ryan expressed his honor in serving as Vice Chair of the ABA, emphasizing the importance of banking in helping communities and driving economic growth [4] - The ABA's leadership team for 2025-26 includes experienced individuals who aim to enhance the banking industry's resources and policy environment [5][8]

Group 1 - Old National Bancorp's earnings are expected to significantly increase due to the acquisition of Bremer Financial this year [1] - Following the merger, the loan balance and net interest margin are likely to stabilize, indicating that the merger is the primary catalyst for earnings growth [1]

Core Viewpoint - Old National Bancorp (ONB) is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended September 2025, with earnings expected to be $0.56 per share, reflecting a +21.7% change, and revenues projected at $696.7 million, up 41.6% from the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for October 22, and the stock may rise if the reported numbers exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised 0.08% higher in the last 30 days, indicating a slight bullish sentiment among analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +1.79% for Old National Bancorp, suggesting analysts have become more optimistic about the company's earnings prospects [12]. - Despite the positive Earnings ESP, the company holds a Zacks Rank of 4 (Sell), complicating the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Old National Bancorp had an earnings surprise of +3.92%, reporting $0.53 per share against an expectation of $0.51 [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Industry Context - In the Zacks Banks - Midwest industry, Wintrust Financial (WTFC) is also expected to report earnings of $2.63 per share, reflecting a +6.5% year-over-year change, with revenues projected at $681.43 million, up 10.7% [18]. - Wintrust has an Earnings ESP of +4.12%, but also carries a Zacks Rank of 4 (Sell), making predictions of an earnings beat challenging [19][20].

Core Points - Old National Bancorp is scheduled to release its third-quarter 2025 earnings on October 22, 2025, at approximately 7:00 A.M. ET, followed by a conference call at 10:00 A.M. ET [1] - The company provides various dial-in numbers for the conference call, including U.S. and international options, along with an access code [1] - A webcast of the conference call will be available on Old National's Investor Relations website and can be replayed until midnight ET on November 5, 2025 [1] Company Overview - Old National Bancorp is the holding company of Old National Bank, ranking as the sixth largest commercial bank in the Midwest with approximately $71 billion in assets and $38 billion in assets under management [2] - The company serves clients primarily in the Midwest and Southeast and is among the top 25 banking companies headquartered in the United States [2] - Old National has a long history dating back to 1834 and focuses on building long-term partnerships with clients while supporting the communities it serves [2] - In 2025, Old National was recognized as one of "The Civic 50," highlighting its commitment to community engagement [2]

Core Insights - First Merchants Corp. has agreed to acquire First Savings Financial Group for $241 million in stock, expanding its presence into the Louisville, Kentucky banking market [1][10] - The acquisition is strategically significant as it enhances First Merchants' southern Indiana growth potential and adds exposure to specialty lending verticals [2][5] Company Overview - First Merchants is the second-largest Indiana-based bank with assets of $18.6 billion, while First Savings has assets of $2.4 billion [3][4] - The deal will create a combined institution with $21 billion in assets, 127 branches, $15.3 billion in loans, and $16.6 billion in deposits [10] Strategic Rationale - The acquisition allows First Merchants to enter the competitive Louisville market, where it previously had no presence, and capitalize on commercial lending opportunities [5][9] - First Savings holds a 3% share of Louisville's $45 billion deposit market, with a significant number of branches located in the metropolitan area [5] Financial Implications - The deal is expected to result in 11% earnings accretion for First Merchants in the last nine months of 2026, along with cost savings equal to 27.5% of First Savings' operating expense base [10][11] - First Savings has shown a recovery in its SBA lending, with $111 million in 7(a) loans closed in the current fiscal year, compared to just under $8 million for First Merchants [6][7] Market Reaction - Investor reaction to the acquisition news was mixed, with First Merchants' shares trading down approximately 1.3% following the announcement [11]

Company Overview - Old National Bancorp is the holding company of Old National Bank, the sixth largest commercial bank headquartered in the Midwest, with approximately $71 billion in assets and $38 billion in assets under management [4] - The company focuses on building long-term partnerships with clients while supporting the communities it serves, offering services in consumer and commercial banking, wealth management, and capital markets [4] - In 2025, Old National was recognized as one of "The Civic 50," an honor for the 50 most community-minded companies in the United States [4] Volunteer Initiative - Old National established a new organizational record for volunteer hours during its 4th annual Better Together Days, held on September 17-18, 2025 [1] - A total of 2,100 team members participated, contributing 7,940 hours of volunteer work across 116 organizations in 12 states [5] - The initiative reflects the company's commitment to community service, with team members engaging in various volunteer activities in states including Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, North Carolina, North Dakota, Tennessee, Wisconsin, and Florida [2][3]