[Q1 2025 Earnings Overview](index=1&type=section&id=Q1%202025%20Earnings%20Overview) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Jim Ryan attributed strong Q1 results to a robust deposit franchise, solid loan growth, and disciplined expense management, preparing for the Bremer Bank partnership - The strong Q1 results are attributed to a peer-leading deposit franchise, solid loan growth, and disciplined expense management[1](index=1&type=chunk) - The company is preparing for its partnership with Bremer Bank, with an expected closing date of May 1, 2025[1](index=1&type=chunk) [First Quarter Highlights](index=1&type=section&id=First%20Quarter%20Highlights) Old National Bancorp reported Q1 2025 net income of $140.6 million, with a 3.27% net interest margin and strong deposit and loan growth Q1 2025 Key Financial Results | Metric | Value | Adjusted Value | | :--- | :--- | :--- | | Net Income (common shares) | $140.6 million | $145.5 million | | Diluted EPS | $0.44 | $0.45 | | PPNR | $218.3 million | $224.3 million | | ROATCE | 15.0% | 15.5% | Q1 2025 Balance Sheet and Margin Highlights | Metric | Value | Change (Linked-Quarter) | | :--- | :--- | :--- | | Net Interest Margin (FTE) | 3.27% | Down 3 bps | | Total Deposits (Period-end) | $41.0 billion | Up 2.1% annualized | | Total Loans (Period-end) | $36.5 billion | Up 1.5% annualized | | Tier 1 Common Equity Ratio | 11.62% | Up 24 bps | [Results of Operations](index=2&type=section&id=Results%20of%20Operations) [Deposits and Funding](index=2&type=section&id=Deposits%20and%20Funding) Period-end total deposits grew 2.1% annualized to $41.0 billion, maintaining strong liquidity with an 89% loan-to-deposit ratio and reduced deposit costs Deposit Metrics (Q1 2025) | Metric | Value | Change (Linked-Quarter) | | :--- | :--- | :--- | | Period-end Total Deposits | $41.0 billion | Up 2.1% annualized | | Period-end Core Deposits | - | Up 1.7% annualized | | Average Total Deposits | $40.5 billion | Down 6.2% annualized | | Total Deposit Costs | 1.91% | Down 17 bps | - A loan-to-deposit ratio of **89%** provides strong liquidity[8](index=8&type=chunk) [Loans](index=2&type=section&id=Loans) Total loans increased 1.5% annualized to $36.5 billion, supported by $1.5 billion in commercial loan production and a robust pipeline Loan Metrics (Q1 2025) | Metric | Value | | :--- | :--- | | Period-end Total Loans | $36.5 billion | | Annualized Growth | 1.5% | | Commercial Loan Production | $1.5 billion | | Commercial Pipeline | $3.4 billion | [Credit Quality](index=2&type=section&id=Credit%20Quality) Credit quality remained resilient with a $31.4 million provision for credit losses, 24 basis points in net charge-offs, and improved 30+ day delinquencies Credit Quality Metrics (Q1 2025 vs Q4 2024) | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Provision Expense | $31.4 million | $27.0 million | | Net Charge-offs (bps) | 24 bps | 21 bps | | 30+ Day Delinquencies | 0.22% | 0.27% | | Nonaccrual Loans % | 1.29% | 1.23% | | ACL / Total Loans | 1.16% | 1.14% | [Net Interest Income and Margin](index=2&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income decreased to $393.0 million, with net interest margin compressing to 3.27%, primarily due to lower accretion income and fewer days Net Interest Income & Margin (Q1 2025 vs Q4 2024) | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Net Interest Income (FTE) | $393.0 million | $400.0 million | | Net Interest Margin (FTE) | 3.27% | 3.30% | | Accretion Income | $12.3 million | $18.5 million | | Cost of Total Deposits | 1.91% | 2.08% | [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Total noninterest income decreased by 2.1% to $93.8 million, influenced by seasonal bank fees and a gain from commercial real estate loan sales - Total noninterest income decreased by **2.1%** to **$93.8 million** compared to the prior quarter[8](index=8&type=chunk) - The decrease was driven by seasonally lower bank fees and lower company-owned life insurance income[8](index=8&type=chunk) - Other income included **$4.8 million** in gains from the sale of **$71 million** of commercial real estate loans[9](index=9&type=chunk) [Noninterest Expense](index=3&type=section&id=Noninterest%20Expense) Disciplined expense management led to adjusted noninterest expense decreasing to $262.6 million, maintaining a stable adjusted efficiency ratio of 51.8% Noninterest Expense & Efficiency Ratio (Q1 2025 vs Q4 2024) | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Noninterest Expense | $268.5 million | $276.8 million | | Adjusted Noninterest Expense | $262.6 million | $268.7 million | | Efficiency Ratio | 53.7% | 54.4% | | Adjusted Efficiency Ratio | 51.8% | 51.8% | - Q1 2025 expenses included **$5.9 million** of merger-related charges[15](index=15&type=chunk) [Income Taxes](index=3&type=section&id=Income%20Taxes) Income tax expense was $36.9 million, resulting in an effective tax rate of 20.3%, with the adjusted FTE rate at 22.6% Tax Metrics (Q1 2025 vs Q4 2024) | Metric | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Income Tax Expense | $36.9 million | $32.2 million | | Effective Tax Rate | 20.3% | 17.3% | | Adjusted FTE Tax Rate | 22.6% | 19.8% | [Capital](index=3&type=section&id=Capital) Capital ratios strengthened due to retained earnings, with the preliminary Tier 1 common equity ratio increasing to 11.62% and TCE to TA rising to 7.76% Key Capital Ratios (Q1 2025) | Ratio | Value | Change (Linked-Quarter) | | :--- | :--- | :--- | | Tier 1 Common Equity | 11.62% | Up 24 bps | | Tier 1 Capital | 12.23% | Up 25 bps | | Total Risk-Based Capital | 13.68% | Up 31 bps | | TCE / TA | 7.76% | Up from 7.41% | [Financial Statements and Data](index=8&type=section&id=Financial%20Statements%20and%20Data) [Financial Highlights](index=8&type=section&id=Financial%20Highlights) This section provides a five-quarter comparative summary of Old National's key financial metrics, including income statement, per-share data, and capital ratios Selected Performance Ratios (Q1 2025 vs Q4 2024) | Ratio | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | ROAA | 1.08% | 1.14% | | ROAE | 9.1% | 9.8% | | ROATCE | 15.0% | 16.4% | | NIM (FTE) | 3.27% | 3.30% | | Efficiency Ratio | 53.7% | 54.4% | [Income Statement](index=10&type=section&id=Income%20Statement) The detailed income statement for Q1 2025 shows net interest income of $387.6 million and net income applicable to common shares of $140.6 million Q1 2025 Income Statement Summary | Line Item | Amount (in thousands) | | :--- | :--- | | Net Interest Income | $387,643 | | Provision for Credit Losses | $31,403 | | Total Noninterest Income | $93,794 | | Total Noninterest Expense | $268,471 | | Net Income Applicable to Common Shares | $140,625 | [End of Period Balance Sheet](index=12&type=section&id=End%20of%20Period%20Balance%20Sheet) As of March 31, 2025, Old National's balance sheet showed total assets of $53.9 billion, with $41.0 billion in deposits and $6.5 billion in equity Balance Sheet Summary (as of March 31, 2025) | Account | Amount (in thousands) | | :--- | :--- | | Total Loans | $36,413,944 | | Total Investments | $11,167,096 | | **Total Assets** | **$53,877,944** | | Total Deposits | $41,034,572 | | Total Borrowed Funds | $5,447,054 | | **Total Shareholders' Equity** | **$6,534,654** | [Average Balance Sheet and Interest Rates](index=14&type=section&id=Average%20Balance%20Sheet%20and%20Interest%20Rates) This schedule details average balances and interest rates, showing Q1 2025 total average earning assets at $48.1 billion with a 5.30% yield Q1 2025 Average Balances and Rates | Metric | Rate/Yield | | :--- | :--- | | Yield on Total Earning Assets | 5.30% | | Cost of Total Interest-Bearing Liabilities | 2.66% | | Net Interest Rate Spread | 2.64% | | Net Interest Margin (FTE) | 3.27% | [Asset Quality (EOP)](index=16&type=section&id=Asset%20Quality%20(EOP)) This section provides a detailed five-quarter analysis of asset quality, with ACL on loans increasing to $401.9 million and nonaccrual loans rising to 1.29% Allowance for Credit Losses on Loans Roll-Forward (Q1 2025) | Item | Amount (in thousands) | | :--- | :--- | | Beginning ACL | $392,522 | | Provision for credit losses | $31,026 | | Net Charge-offs (NCOs) | ($21,616) | | **Ending ACL** | **$401,932** | Underperforming Assets (as of March 31, 2025) | Metric | Value (in thousands) | % of EOP Loans | | :--- | :--- | :--- | | Nonaccrual loans | $469,211 | 1.29% | | Total underperforming assets | $482,269 | 1.32% | [Appendix](index=3&type=section&id=Appendix) [Non-GAAP Measures](index=18&type=section&id=Non-GAAP%20Measures) This section provides detailed reconciliations for non-GAAP financial measures, aiding investors in assessing core operational performance by excluding specific items - The company provides non-GAAP results to assist investors in assessing underlying operating performance, excluding items that do not pertain to core business operations[14](index=14&type=chunk)[17](index=17&type=chunk) Reconciliation of GAAP to Adjusted EPS (Q1 2025) | Item | Per Share Amount | | :--- | :--- | | **EPS, diluted (GAAP)** | **$0.44** | | Merger-related charges, net | $0.01 | | Debt securities losses, net | $0.00 | | **Adjusted EPS, diluted (Non-GAAP)** | **$0.45** | [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains cautionary language regarding forward-looking statements, outlining risks and uncertainties that could cause actual results to differ from expectations - The report contains forward-looking statements that are not guarantees of future performance and are subject to risks and uncertainties[23](index=23&type=chunk)[25](index=25&type=chunk) - Key risks include changes in economic conditions, competition, government regulation, and potential difficulties related to the integration of Bremer Financial Corporation[23](index=23&type=chunk)[25](index=25&type=chunk)

Core Insights - Old National Bancorp reported a net income applicable to common shares of $140.6 million for Q1 2025, with a diluted EPS of $0.44, and an adjusted net income of $145.5 million with an adjusted EPS of $0.45, indicating strong financial performance despite economic challenges [1][2][5][6]. Financial Performance - The net interest income on a fully taxable equivalent basis was $393.0 million, reflecting a decrease from $400.0 million, with a net interest margin (NIM) of 3.27%, down 3 basis points [4][17]. - Pre-provision net revenue (PPNR) was reported at $218.3 million, with an adjusted PPNR of $224.3 million [4]. - Noninterest expense totaled $268.5 million, with adjusted noninterest expense at $262.6 million, demonstrating disciplined expense management [4][17]. Deposits and Funding - Total deposits at the end of the period were $41.0 billion, up 2.1% annualized, with core deposits increasing by 1.7% annualized [4][11]. - The cost of total deposits decreased by 17 basis points to 1.91%, indicating a granular low-cost deposit franchise [4][11]. Loans and Credit Quality - Total loans at the end of the period were $36.5 billion, up 1.5% annualized, with a provision for credit losses of $31.4 million [4][11]. - Net charge-offs were $21.6 million, or 24 basis points of average loans, with 30+ day delinquencies at 0.22% and nonaccrual loans at 1.29% of total loans, reflecting resilient credit quality [4][10][11]. Capital and Return Metrics - Return on average tangible common equity (ROATCE) was 15.0%, with an adjusted ROATCE of 15.5% [4][10]. - Preliminary regulatory Tier 1 common equity to risk-weighted assets was 11.62%, up 24 basis points, indicating strong capital ratios [10][17].

The upcoming report from Old National Bancorp (ONB) is expected to reveal quarterly earnings of $0.42 per share, indicating a decline of 6.7% compared to the year-ago period. Analysts forecast revenues of $478.3 million, representing an increase of 8.7% year over year.The current level reflects an upward revision of 4.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this ...

Group 1 - Old National Bancorp (ONB) shares increased by 9.8% to $19.70, following a significant trading volume, contrasting with a 10.8% loss over the previous four weeks [1][2] - The stock surge was influenced by President Trump's announcement of a 90-day tariff pause for non-retaliating nations, which positively impacted investor sentiment [2] - Old National Bancorp is projected to report quarterly earnings of $0.42 per share, reflecting a year-over-year decline of 6.7%, while revenues are expected to reach $478.3 million, an increase of 8.7% from the prior year [2] Group 2 - The consensus EPS estimate for Old National Bancorp has been revised 4.4% higher in the last 30 days, indicating a potential for price appreciation [4] - The stock holds a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to other stocks in the same industry [4] - Independent Bank, a peer in the Midwest banking industry, saw its stock rise by 4.5% to $29.84, but has experienced a -5.4% return over the past month [4]

Core Insights - Old National Bancorp has rebranded its wealth advisory division from Old National Investments to Old National Wealth Advisors (ONWA) to better represent the comprehensive services offered by its financial professionals [1][2] Company Overview - Old National Bancorp is the holding company for Old National Bank, ranking as the sixth largest commercial bank headquartered in the Midwest with approximately $54 billion in assets and $30 billion in assets under management [4] - The company serves clients primarily in the Midwest and Southeast and has a history dating back to 1834, focusing on long-term partnerships and community support [4] Wealth Advisory Services - ONWA has around 125 team members, including over 70 wealth advisors, primarily located in the Midwest and Southeast [2] - The services offered by ONWA include investment strategies, estate planning, financial and retirement planning, college saving options, insurance guidance, and tax planning [6][7] - ONWA operates under three service models tailored to client needs: 1. Investment Strategies Team for clients focused on investing and planning [7] 2. Private Wealth Management for clients planning for retirement and major life events, providing dedicated resources [7] 3. 1834 division for high-net-worth clients with complex financial needs, offering institutional services [7] Strategic Partnerships - ONWA is backed by LPL Financial, a leading independent broker/dealer and registered investment advisor, enhancing its service offerings [2][8]

Group 1 - Old National Bancorp is scheduled to release its first-quarter 2025 earnings on April 22, 2025, at approximately 7:00 A.M. ET, followed by a conference call at 10:00 A.M. ET [1] - The company provides dial-in numbers for both U.S. and international participants, along with an access code for the conference call [1] - A webcast of the conference call will be available on Old National's Investor Relations website, with a replay accessible for one year after the call [1] Group 2 - Old National Bancorp is the holding company of Old National Bank, ranking as the sixth largest commercial bank in the Midwest with approximately $54 billion in assets and $30 billion in assets under management [2] - The company focuses on building long-term partnerships with clients and has been recognized as one of "The Civic 50," highlighting its commitment to community service [2]

Core Viewpoint - Old National Bancorp (ONB) has received a Zacks Rank 2 (Buy) upgrade due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, particularly influenced by institutional investors who adjust their valuations based on these estimates [4][6]. - Rising earnings estimates for Old National Bancorp indicate an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Old National Bancorp is projected to earn $2.08 per share, reflecting an 11.8% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Old National Bancorp has risen by 2.2%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system categorizes stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - Old National Bancorp's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for the stock in the near term [10].

Company Overview - Old National Bancorp is the holding company of Old National Bank, the sixth largest commercial bank headquartered in the Midwest [3] - The company serves clients primarily in the Midwest and Southeast, with approximately $54 billion in assets and $30 billion in assets under management [3] - Old National ranks among the top 30 banking companies in the United States and has a history dating back to 1834 [3] - The company focuses on building long-term partnerships with clients and supporting the communities it serves [3] - Old National offers extensive services in consumer and commercial banking, as well as comprehensive wealth management and capital markets services [3] - In 2024, Old National was recognized as one of "The Civic 50," an honor for the 50 most community-minded companies in the U.S. [3] Upcoming Events - Jim Ryan, Chairman and CEO of Old National Bancorp, is scheduled to present at the Raymond James & Associates 46th Annual Institutional Investors Conference on March 3, 2025, at 1:40 p.m. Eastern Time [1] - Mr. Ryan will also present at the 2025 RBC Capital Markets Global Financial Institutions Conference on March 4, 2025, at 10:40 a.m. Eastern Time [1] - Interested investors can access live audio webcasts of these events in the Investor Relations section at oldnational.com, with replays available afterward [2]

Group 1 - The Company declared a quarterly cash dividend of $0.14 per share on its common stock, payable on March 17, 2025, to shareholders of record as of March 5, 2025 [1] - A quarterly cash dividend of $17.50 per share on the 7.0% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A and Series C, was also declared, payable on May 20, 2025, to shareholders of record as of May 5, 2025 [2] - The Board of Directors approved a stock repurchase program authorizing the repurchase of up to $200 million of the Company's common stock, effective until February 28, 2026 [3] Group 2 - Old National Bancorp is the holding company of Old National Bank, ranking as the sixth largest commercial bank in the Midwest with approximately $54 billion in assets and $30 billion in assets under management [4] - The Company focuses on building long-term partnerships with clients and supporting the communities it serves, offering services in consumer and commercial banking, wealth management, and capital markets [4] - In 2024, Old National was recognized as one of "The Civic 50," an honor for the 50 most community-minded companies in the United States [4]

Financial Performance - Net income applicable to common shareholders for 2024 was $523.1 million, or $1.68 per diluted common share, with an adjusted net income of $578.1 million, or $1.86 per diluted common share [225][226]. - Diluted net income per share decreased to $1.68 in 2024 from $1.94 in 2023, representing a decline of approximately 13.4% [234]. - Net income applicable to common shares for 2024 was $523,053, down from $565,857 in 2023, reflecting a decrease of approximately 7.4% [244]. - Adjusted net income applicable to common shares for 2024 was $578,054, compared to $599,227 in 2023, indicating a decline of about 3.5% [244]. - Return on average common equity was 9.06% in 2024, down from 11.29% in 2023, but up from 8.92% in 2022 [246]. Asset and Loan Growth - Total loans reached $36.29 billion as of December 31, 2024, compared to $33.62 billion a year earlier [232]. - Total loans increased to $36,285,887 in 2024, up from $32,991,927 in 2023, indicating a growth of about 10.4% [234]. - Total assets grew to $53,552,272 in 2024, compared to $49,089,836 in 2023, marking an increase of approximately 9.9% [234]. - Average loans, including loans held-for-sale, increased by $3.3 billion in 2024, primarily due to loans acquired in the CapStar transaction, totaling $2.1 billion at transaction close [261]. - Total loan portfolio rose to $36.3 billion in 2024, an increase of $3.3 billion or 10.0% compared to 2023 [284]. Income and Expense Analysis - Net interest income increased by 2% to $1.5 billion in 2024, driven by strong loan growth and the interest rate environment [227]. - Noninterest income rose from $333.3 million in 2023 to $354.7 million in 2024, primarily due to the CapStar merger and higher wealth management fees [227]. - Noninterest expense increased by $68.1 million in 2024, including $37.3 million of merger-related expenses and $13.3 million related to pension asset distribution [227]. - The efficiency ratio improved to 55.85% in 2024 from 53.70% in 2023, indicating enhanced operational efficiency [234]. - The net interest margin for 2024 was 3.31%, a decrease from 3.54% in 2023, reflecting a decline of approximately 6.5% [244]. Credit Quality and Risk Management - The allowance for credit losses on loans increased to 1.08% of ending loans in 2024, compared to 0.93% in 2023, suggesting a more conservative approach to credit risk [234]. - Non-performing loans to ending loans increased to 1.23% in 2024 from 0.83% in 2023, indicating a rise in credit quality concerns [234]. - The allowance for credit losses on loans increased to $392.5 million from $307.6 million, reflecting organic loan growth and the CapStar acquisition [298]. - The net charge-offs to average loans ratio was 0.17% in 2024, reflecting a significant increase from 0.06% in 2023 [263]. - The company noted that future loan growth, a decline in recoveries, or an increase in charge-offs could lead to higher provision expenses [336]. Mergers and Acquisitions - Old National completed the acquisition of CapStar on April 1, 2024, enhancing its presence in Nashville and other Southeastern markets [228]. - The partnership with Bremer Bank was announced in 2024, expected to close in mid-2025, expanding opportunities in the upper Midwest [229]. - Goodwill and other intangible assets totaled $2.3 billion, an increase of $195.1 million due to the CapStar acquisition [301]. - Commercial and commercial real estate loans increased by $2.9 billion to $26.6 billion, primarily due to the acquisition of CapStar and balanced loan production across markets [287]. Regulatory and Tax Considerations - The effective tax rate decreased to 20.8% in 2024 from 22.5% in 2023, reflecting lower pre-tax book income and increased tax credits [273]. - The company reviews income tax expense and deferred tax assets quarterly, adjusting balances as new information becomes available, adhering to complex U.S. tax laws [378]. - Management believes that judgments and estimates regarding tax provisions are reasonable, but actual results could differ, impacting the effective income tax rate significantly [378]. Liquidity and Funding - Total funding increased to $46.24 billion at December 31, 2024, up 8.6% from $42.57 billion in 2023 [303]. - Total deposits rose to $40.82 billion, a 9.6% increase from $37.24 billion in 2023, driven by the CapStar transaction and organic growth [303]. - Old National Bancorp has available liquid funds totaling $299,179 from the parent company and $14,586,546 from subsidiaries, including cash and unencumbered securities [354]. - The company can pay dividends of $889.2 million without prior regulatory approval while maintaining capital levels above regulatory minimums [357]. Interest Rate Management - The yield on average earning assets increased by 41 basis points from 5.18% in 2023 to 5.59% in 2024, while the cost of interest-bearing liabilities rose by 73 basis points from 2.25% to 2.98% [259]. - Interest rate risk management includes using various techniques such as adjusting balance sheet mix and modifying investment securities characteristics [343]. - The company continues to model different interest rate scenarios to assess sensitivity to market changes, recognizing that model outputs are not guarantees of actual results [347].