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]

Financial Performance - The company reported a Return on Average Tangible Common Equity (ROATCE) of 15.9%, which adjusted to 20.1%[11] - The company reported a Return on Average Assets (ROAA) of 1.03%, which adjusted to 1.32%[11] - The company's efficiency ratio was 58.8%, adjusted to 48.1%[11] - Net income applicable to common shares was $179 million, which adjusted to $231 million[12] - Earnings per share (EPS) was $0.46, adjusted to $0.59[12] Balance Sheet and Capital - Total loans reached $48.048 billion[15] - Total assets amounted to $71.210 billion[15] - Total deposits were $55.006 billion[15] - The CET1 capital to Risk Weighted Assets (RWA) ratio was 11.02%[15] - Tangible common book value per share grew by 17.5% annualized[12] Credit Quality - Criticized and classified loans decreased by 6%, a reduction of $223 million[11, 14] - Net charge-offs (NCOs) were 0.25%, or 25 bps, with 0.17%, or 17 bps, excluding Purchased Credit Deteriorated (PCD) loans[14]

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]