UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission File Number 001-15817 (Address of principal executive offices) (800) 731-2265 (Registrant's telephone number, including area code) ...

Exhibit 99.1 Old National Bancorp Reports Second Quarter 2025 Results and Names New President and COO Evansville, Ind. (July 22, 2025) Old National Bancorp (NASDAQ: ONB) reports 2Q25 net income applicable to common shares of $121.4 million, diluted EPS of $0.34; $190.9 million and $0.53 on an adjusted basis, respectively. 1 CEO COMMENTARY: "Old National's impressive second quarter results were achieved through a strong focus on the fundamentals: Growing our balance sheet, expanding our fee-based businesses, ...

Financial Performance - Net interest income for Q1 2025 was $387,643,000, a slight decrease from $394,180,000 in Q4 2024, but an increase from $356,458,000 in Q1 2024[163] - Net income available to common shareholders for Q1 2025 was $140,625,000, down from $149,839,000 in Q4 2024 but up from $116,250,000 in Q1 2024[163] - Noninterest income decreased by $2.0 million to $93.8 million compared to Q4 2024, primarily due to lower company-owned life insurance and seasonally lower bank fees[178] - Noninterest income increased by $16.3 million to $93.8 million for the three months ended March 31, 2025, compared to $77.5 million in the same period of 2024, representing a 21.0% increase[200] - Total noninterest expense was $268.5 million for the three months ended March 31, 2025, up 2.3% from $262.3 million in the same period of 2024[203] Credit Losses and Provisions - Provision for credit losses increased to $31,403,000 in Q1 2025 from $27,017,000 in Q4 2024 and $18,891,000 in Q1 2024[163] - The provision for credit losses increased by 66.2% to $31.403 million for the three months ended March 31, 2025, compared to $18.891 million in 2024, primarily due to credit migration and higher net charge-offs[199] - The allowance for credit losses on loans was $401.9 million at March 31, 2025, an increase from $392.5 million at December 31, 2024, driven by macroeconomic factors and loan growth[244] - Net charge-offs on loans increased to $21.616 million for the three months ended March 31, 2025, compared to $11.750 million in 2024, reflecting a 84.0% increase[199] Loans and Deposits - Total loans as of March 31, 2025, were $36,413,944,000, compared to $36,285,887,000 at the end of 2024[163] - Total deposits rose to $41,034,572,000 as of March 31, 2025, compared to $40,823,560,000 at the end of 2024[163] - Loan balances increased by $128.1 million, or 1.4% annualized, to $36.4 billion at March 31, 2025, with a 2.3% annualized increase excluding $71 million of commercial real estate loans sold[176] - Total deposits increased by $211.0 million to $41.03 billion as of March 31, 2025, reflecting organic growth[225] Capital and Ratios - The Tier 1 common equity ratio improved to 11.62% in Q1 2025 from 11.38% in Q4 2024[163] - Shareholders' equity rose to $6.5 billion as of March 31, 2025, up from $6.3 billion at the end of 2024[227] - The Tier 1 capital to total average assets ratio was 9.44% as of March 31, 2025, exceeding the regulatory minimum of 4.00%[229] - The total capital to risk-weighted total assets ratio was 13.68% as of March 31, 2025, above the regulatory minimum of 10.50%[229] Efficiency and Management - The efficiency ratio for Q1 2025 was 53.74%, slightly improved from 54.37% in Q4 2024[163] - The efficiency ratio improved to 53.74% in Q1 2025 from 58.34% in Q1 2024, indicating better cost management[182] - 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 and acquisitions[231] - The company maintains a Risk Appetite Statement to assess and mitigate various risks, including credit, market, liquidity, and operational risks[232] Strategic Initiatives - The acquisition of CapStar was completed on April 1, 2024, enhancing the company's presence in Nashville and other high-growth Southeastern markets[181] - A definitive merger agreement with Bremer Financial Corporation has been approved, with the transaction expected to close on May 1, 2025[181] Interest Income and Expense - Total interest income increased by $33.525 million, with loans contributing $24.702 million to this increase[191] - The yield on interest-earning assets decreased by 16 basis points, while the cost of interest-bearing liabilities decreased by 22 basis points in the three months ended March 31, 2025, compared to the same quarter a year ago[194] - Total interest expense is expected to rise from $737,428 thousand in 2025 to $3,357,153 thousand, indicating a significant increase in funding costs[252] Market Conditions and Projections - The Federal Funds Rate is projected to remain at 4.5% under the base scenario for March 31, 2025[253] - The company recognizes that deposit flows and loan prepayments are influenced by various market conditions, making them less predictable[258] - The credit ratings of Old National and Old National Bank are critical for acquiring funding at competitive prices[260]

Financial Performance - Old National Bancorp reported Q1 2025 net income applicable to common shares of $140.6 million, with diluted EPS of $0.44; adjusted net income was $145.5 million, or $0.45 per diluted share [1][2][3]. - Net income available to common shareholders for Q1 2025 was $140,625,000, compared to $149,839,000 in Q4 2024 [28]. - Net income for Q1 2025 was $144,659,000, compared to $153,873,000 in Q4 2024, representing a decline of 6.9% [31]. - The net income applicable to common shares for the three months ended March 31, 2025, was $140,625 thousand, compared to $149,839 thousand for the previous quarter, reflecting a decrease of 6.5% [40]. - Total revenue for Q1 2025 was $486,797,000, a slight decrease from $495,723,000 in Q4 2024, but an increase from $440,233,000 in Q1 2024 [42]. - Adjusted PPNR for Q1 2025 was $224,258,000, compared to $227,138,000 in Q4 2024 and $197,152,000 in Q1 2024, indicating a year-over-year growth of 13.8% [42]. Deposits and Loans - Total deposits at the end of the period were $41.0 billion, reflecting a 2.1% annualized increase; core deposits rose by 1.7% annualized [2][8]. - Total loans at the end of the period were $36.5 billion, up 1.5% annualized; commercial loan production for the quarter was $1.5 billion [2][8]. - Total loans increased to $36,413,944,000 in Q1 2025, up from $36,285,887,000 in Q4 2024, marking a growth of 0.4% [32]. - Total deposits rose to $41,034,572,000 in Q1 2025, compared to $40,823,560,000 in Q4 2024, indicating an increase of 0.5% [32]. - Demand deposits increased to $9.10 billion, while total interest-bearing deposits were $31.43 billion [36]. Interest Income and Margin - Net interest income on a fully taxable equivalent basis was $393.0 million, down from $400.0 million, with a net interest margin of 3.27%, a decrease of 3 basis points [2][8]. - Net interest income for Q1 2025 was $387,643,000, a slight decrease from $394,180,000 in Q4 2024 [28]. - Net interest income after provision for credit losses for Q1 2025 was $356,240,000, a decrease of 3.4% from $367,163,000 in Q4 2024 [31]. - The net interest margin (NIM) for the quarter was 3.23%, a slight decrease from 3.26% in the previous quarter [40]. Credit Losses and Provisions - Provision for credit losses was $31.4 million, with net charge-offs of $21.6 million, or 24 basis points of average loans [2][8]. - Provision for credit losses increased to $31,403,000 in Q1 2025 from $27,017,000 in Q4 2024 [28]. - The allowance for credit losses on loans was $401,932,000 as of March 31, 2025, up from $392,522,000 in Q4 2024 [32]. - The provision for credit losses on loans was $31,026 thousand for the quarter, slightly up from $30,417 thousand in the prior quarter, indicating a 2% increase [38]. Efficiency and Ratios - The efficiency ratio was 53.7%, while the adjusted efficiency ratio was 51.8%, compared to 54.4% and 51.8% in the previous quarter [2][15]. - The efficiency ratio for Q1 2025 improved to 53.7%, compared to 54.4% in Q4 2024 and 58.3% in Q1 2024, indicating better cost management [42]. - Return on average tangible common equity (ROATCE) was 15.0%, with adjusted ROATCE at 15.5% [2][15]. - The tangible common equity to tangible assets ratio improved to 7.76% as of March 31, 2025, compared to 7.41% in Q4 2024 [44]. Assets and Equity - Total assets as of Q1 2025 were $53,877,944,000, compared to $53,552,272,000 in Q4 2024 [28]. - Shareholders' equity increased to $6,534,654,000 as of March 31, 2025, compared to $6,340,350,000 at the end of Q4 2024 [32]. - Average shareholders' equity increased to $6,416,485,000 in Q1 2025 from $6,338,953,000 in Q4 2024 [43]. Other Key Developments - The company anticipates closing its partnership with Bremer Bank on May 1, 2025, which is expected to enhance its market position [1]. - The company incurred merger-related charges of $5,856,000 in Q1 2025, compared to $8,117,000 in Q4 2024 [42].

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 [226][227]. - 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 6% [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 decreased to 9.06% in 2024 from 11.29% in 2023, while return on average tangible common equity fell to 15.37% from 20.15% [246]. Asset and Deposit Growth - Total assets reached $53.55 billion as of December 31, 2024, with total loans at $36.29 billion [232]. - Total assets grew to $53,552,272 in 2024, compared to $49,089,836 in 2023, marking an increase of approximately 9.9% [234]. - Total deposits rose to $40,823,560 in 2024, up from $37,235,180 in 2023, reflecting a growth of about 6.9% [234]. - Core deposits grew by approximately 10% in 2024, funding a corresponding 10% growth in loans [230]. - 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 [300]. Loan Performance - 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 loans reached $36.3 billion in 2024, an increase of $3.3 billion or 10.0% from 2023, driven by growth in commercial and commercial real estate loans [281]. - The average loans for the year increased to $35.5 billion in 2024 from $32.2 billion in 2023, reflecting growth in the loan portfolio [331]. - 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 [284]. Interest Income and Expense - Net interest income increased by 2% to $1.5 billion in 2024, driven by loan growth and the interest rate environment [228]. - Net interest income for 2024 reached $1,503,153, compared to $1,503,153 in 2023, reflecting a stable performance [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]. - Total interest income is projected to increase to $5.8 billion in 2024, compared to $5.3 billion in 2023, indicating a year-over-year growth of 9.4% [342]. - Total interest expense is projected to rise to $2.9 billion in 2024, up from $2.0 billion in 2023, marking a 44.1% increase [342]. Noninterest Income and Expense - Noninterest income rose from $333.3 million in 2023 to $354.7 million in 2024, primarily due to the CapStar merger and higher fees [228]. - Noninterest income for 2024 was $354,697, compared to $333,342 in 2023, showing an increase of approximately 6.4% [244]. - 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 [228]. - Salaries and employee benefits rose by 10.4% to $603.1 million in 2024, reflecting merit increases [269]. Credit Quality and Allowance for Credit Losses - 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 [295]. - The allowance for credit losses on loans was 87.62% for nonaccrual loans as of December 31, 2024, down from 111.93% in 2023 [323]. Mergers and Acquisitions - Old National completed the acquisition of CapStar on April 1, 2024, enhancing its presence in Nashville and other Southeastern markets [229]. - The partnership with Bremer Bank was announced in 2024, expected to close in mid-2025, expanding opportunities in the upper Midwest [230]. - Average loans, including loans held-for-sale, rose by $3.3 billion in 2024, primarily due to loans acquired in the CapStar transaction, totaling $2.1 billion at transaction close [260]. Capital and Equity - The Tier 1 capital ratio improved to 11.98% in 2024 from 11.35% in 2023, indicating stronger capital adequacy [234]. - Shareholders' equity reached $6.3 billion, representing 12% of total assets, up from $5.6 billion or 11% in 2023 [302]. - The tangible common book value increased to $11.91 per share in 2024 from $11.00 in 2023, showing an increase of about 8.3% [244]. Economic and Regulatory Environment - The Federal Reserve's Effective Federal Funds Rate decreased to 4.33% in December 2024 from 5.33% in December 2023, impacting net interest margin [248]. - The effective tax rate decreased to 20.8% in 2024 from 22.5% in 2023, attributed to increased tax credits and tax-exempt income [271]. - The company reported a provision for credit losses on loans of $120.2 million in 2024, significantly higher than the $59.8 million in 2023 [331].

Financial Performance - Fourth quarter net income applicable to common shares was $149.8 million, with diluted EPS of $0.47; adjusted net income was $156.0 million, or $0.49 per diluted share[1][2][3]. - Full-year net income applicable to common shares reached $523.1 million, with diluted EPS of $1.68; adjusted net income was $578.1 million, or $1.86 per diluted share[1]. - Net income available to common shareholders for Q4 2024 was $149,839,000, compared to $116,250,000 in Q4 2023, marking a 28.9% increase[32]. - The diluted EPS for Q4 2024 was $0.47, up from $0.40 in Q4 2023, representing a growth of 17.5%[32]. - Adjusted net income applicable to common shares for the period was $155,989 million, compared to $147,216 million in the previous period, reflecting an increase of 1.2%[45]. - The diluted EPS for the current period was $0.47, up from $0.44 in the previous period, representing a growth of 6.8%[45]. - Total revenue for the three months ended December 31, 2024, was $495,723,000, compared to $492,006,000 for the same period in 2023, reflecting a year-over-year increase of 0.35%[46]. Loan and Deposit Metrics - Total loans at period-end were $36.3 billion, reflecting a decrease of 1.6% annualized; total commercial loan production for the quarter was $1.5 billion[2][9]. - Total loans at the end of Q4 2024 were $36,285,887,000, compared to $33,623,319,000 at the end of Q4 2023, showing an increase of 7.9%[32]. - Total deposits at period-end were $40.8 billion, consistent with the previous quarter, with core deposits increasing by 1.9% annualized[2][9]. - Total deposits at the end of Q4 2024 were $40,823,560,000, compared to $37,699,418,000 at the end of Q4 2023, reflecting an increase of 5.6%[32]. - Demand deposits increased to $9.51 billion, compared to $9.37 billion in the previous quarter[39]. - Demand deposits decreased to $9,424,577 from $10,633,806 in 2023[41]. Interest Income and Margin - Net interest income on a fully taxable equivalent basis was $400.0 million, with a net interest margin of 3.30%, down 2 basis points[2][9]. - Net interest income for Q4 2024 was $394,180,000, an increase from $356,458,000 in Q4 2023, representing a growth of 10.6% year-over-year[32]. - The company reported a net interest margin (FTE) of 3.30% for the quarter[39]. - The NIM (GAAP) for the current period was 3.26%, a slight decrease from 3.27% in the previous period[45]. - The NIM (FTE) for the current period was 3.30%, a slight decrease from 3.32% in the previous period[45]. Credit Quality and Provisions - Provision for credit losses was $27.0 million, with net charge-offs of $18.7 million, or 21 basis points of average loans[2][9]. - Provision for credit losses in Q4 2024 was $27,017,000, compared to $11,595,000 in Q4 2023, indicating a significant increase in provisions[32]. - The allowance for credit losses on loans increased to $(392,522) thousand, compared to $(307,610) thousand in the previous year, indicating a rise in provisions for potential loan losses[36]. - The net charge-offs (NCOs) for the three months ended December 31, 2024, were $18,735 thousand, an increase from $17,474 thousand in the prior quarter[42]. - The ratio of NCOs to average loans was 0.21% for the three months ended December 31, 2024, compared to 0.19% in the prior quarter[42]. Operational Efficiency - Noninterest expense was $276.8 million, including $8.1 million of merger-related charges; adjusted noninterest expense was $268.7 million[2][15]. - The efficiency ratio was 54.4%, while the adjusted efficiency ratio was 51.8%[2][15]. - The efficiency ratio for Q4 2024 was 54.4%, slightly improved from 58.3% in Q4 2023[32]. - The adjusted efficiency ratio for the three months ended December 31, 2024, was 51.8%, compared to 51.2% in the same period of 2023, indicating improved cost management[47]. Capital and Equity - Preliminary regulatory Tier 1 common equity to risk-weighted assets was 11.38%, up 38 basis points[2][15]. - Total capital ratio at the end of the period was 13.37%, up from 12.64% in the previous quarter[33]. - Shareholders' equity rose to $6.34 billion, up from $5.28 billion year-over-year[39]. - Average shareholders' common equity increased to $6,095,234,000 as of December 31, 2024, compared to $5,946,352,000 in the previous quarter, marking a 2.5% rise[48]. Future Outlook - The company anticipates continued growth in net interest income and noninterest income driven by strategic initiatives and market expansion[27]. - Future guidance indicates a projected increase in earnings per share, with expectations of reaching $1.50 for the next quarter[44]. - The company plans to enhance its market presence through strategic acquisitions and partnerships in the upcoming fiscal year[44].

Financial Performance - Net interest income for Q3 2024 was $391.724 million, an increase from $375.086 million in Q3 2023, representing a growth of 4.3% year-over-year[169] - Noninterest income reached $94.138 million in Q3 2024, up from $80.938 million in Q3 2023, reflecting a growth of 16.5%[169] - Net income available to common shareholders was $139.768 million in Q3 2024, compared to $143.842 million in Q3 2023, showing a decrease of 2.9%[169] - Total revenue for Q3 2024 was $492,082,000, compared to $462,102,000 in Q3 2023, reflecting an increase of 6.5%[178] - Net income applicable to common shares for Q3 2024 was $139.8 million, or $0.44 per diluted common share, up from $117.2 million, or $0.37 per diluted common share in Q2 2024[183] - Net income applicable to common shares decreased to $373,214 in 2024 from $437,411 in 2023, representing a decline of about 15%[171] Credit Losses and Provisions - Provision for credit losses increased to $28.497 million in Q3 2024 from $19.068 million in Q3 2023, indicating a rise of 49.3%[169] - Provision for credit losses increased significantly to $83,602 in 2024 from $47,292 in 2023[171] - Total provision for credit losses increased by 49.4% to $28,497 thousand for the three months ended September 30, 2024, compared to $19,068 thousand in 2023[213] - The allowance for credit losses on loans was $380.8 million at September 30, 2024, compared to $307.6 million at December 31, 2023, reflecting an increase due to the CapStar acquisition[260] Asset and Loan Growth - Total loans increased to $36.401 billion as of September 30, 2024, from $32.578 billion a year earlier, marking a growth of 11.4%[169] - Total assets grew to $53.602 billion as of September 30, 2024, compared to $49.059 billion in the same period last year, an increase of 9.4%[169] - Total loans reached $36,315,039 thousand for the three months ended September 30, 2024, compared to $32,650,455 thousand in 2023, marking a growth of 11.5%[200] - The loan portfolio totaled $36.4 billion as of September 30, 2024, a $3.4 billion increase from $33.0 billion at December 31, 2023, marking a 10.3% growth[229] Deposits and Funding - Total deposits rose to $40.846 billion as of September 30, 2024, up from $37.253 billion a year ago, representing a growth of 9.5%[169] - Total deposits increased to $40.85 billion, a rise of $3.61 billion or 9.7% from $37.24 billion at December 31, 2023[241] - Deposits assumed in the CapStar transaction totaled $2.6 billion, contributing to the increase in average interest-bearing deposits by $4.9 billion for the three months ended September 30, 2024[212] Efficiency and Profitability Ratios - The efficiency ratio improved to 53.83% in Q3 2024 from 59.05% in Q3 2023, indicating enhanced operational efficiency[169] - The return on average assets increased to 1.08% in Q3 2024, compared to 1.22% in Q3 2023, reflecting a decline in profitability metrics[169] - The return on average tangible common equity for Q3 2024 was 15.96%, compared to 20.18% in Q3 2023, a decrease of 4.22 percentage points[178] - The efficiency ratio worsened to 56.37% in 2024 from 51.89% in 2023, indicating increased operational costs relative to income[171] Capital and Equity - The Tier 1 common equity ratio was 11.00% as of September 30, 2024, up from 10.41% a year earlier, indicating improved capital strength[169] - Shareholders' equity totaled $6.4 billion as of September 30, 2024, compared to $5.6 billion at December 31, 2023[242] - The Tier 1 capital to total average assets ratio was 9.05% as of September 30, 2024, up from 8.83% at December 31, 2023[245] Acquisitions and Market Expansion - The acquisition of CapStar on April 1, 2024, added approximately $3.1 billion in total assets and $2.6 billion in deposits[192] - The number of banking centers increased to 280 in 2024, up from 257 in 2023, reflecting ongoing market expansion efforts[171] Noninterest Income and Expenses - Noninterest income rose to $258,931 in 2024, compared to $233,248 in 2023, reflecting a growth of approximately 11%[171] - Noninterest expense for the three months ended September 30, 2024, was $272.3 million, an increase of 11.2% from $244.8 million in the same period of 2023[219] - Excluding merger-related expenses, noninterest expense increased to $262.8 million for the three months ended September 30, 2024, compared to $238.5 million for the same period in 2023, driven by higher operating costs and salary increases[220] Risk Management - The company performs stress testing periodically to ensure sufficient capital during economic stress, incorporating various key risks[247] - The risk appetite statement addresses major risks including strategic, market, liquidity, credit, operational, and reputational risks[248] Regulatory and Compliance - Old National Bank did not require prior regulatory approval for dividend payments in 2023[279] - The company has filed an automatic shelf registration statement with the SEC, allowing it to issue an unspecified amount of debt or equity securities[273]

Financial Performance - Net income applicable to common shares for Q3 2024 was $139.8 million, with adjusted net income of $147.2 million, resulting in diluted EPS of $0.44 and adjusted EPS of $0.46[1][2][3]. - Net income available to common shareholders for Q3 2024 was $139,768,000, up from $117,196,000 in Q2 2024[28]. - Earnings per share (EPS) for Q3 2024 was $0.44, compared to $0.37 in Q2 2024[28]. - The company reported a net income of $373,214,000 for the nine months ended September 30, 2024, compared to $437,411,000 for the same period in 2023, reflecting a decrease of 14.7%[44]. - The diluted EPS for Q3 2024 was $0.44, compared to $0.37 in Q2 2024 and $0.49 in Q3 2023[31]. - Adjusted net income applicable to common shares for the period was $147,216 million, compared to $144,058 million in the previous period, reflecting a growth of 1.5%[45]. - The adjusted total revenue for the nine months ended September 30, 2024, reached $1,414,361,000, compared to $1,394,761,000 for the same period in 2023, indicating a year-over-year increase of 1.9%[47]. Deposits and Loans - Total deposits at the end of the period reached $40.8 billion, reflecting an increase of $0.8 billion or 8.5% annualized, with core deposits up 10.1% annualized[2][9]. - Total loans at the end of the period were $36.5 billion, up 2.7% annualized, with commercial loan production in Q3 totaling $1.7 billion[2][9]. - Total loans at the end of Q3 2024 reached $36,400,643,000, an increase from $36,150,513,000 at the end of Q2 2024[28]. - Total deposits increased to $40,845,746,000 in Q3 2024 from $39,999,228,000 in Q2 2024[28]. - Total loans reached $36,315,039 million, generating $577,508 million in income, reflecting a 6.36% yield, up from $32,650,455 million and 5.98% in the prior year[36]. Interest Income and Margin - Net interest income on a fully taxable equivalent basis was $397.9 million, an increase from $394.8 million, with a net interest margin of 3.32%, down 1 basis point[2][9]. - Net interest income for Q3 2024 was $391,724,000, an increase from $388,421,000 in Q2 2024[28]. - Interest income for Q3 2024 reached $679,925, an increase from $663,663 in Q2 2024 and $595,981 in Q1 2024, reflecting a growth trend[31]. - The net interest margin (GAAP) for the quarter was 3.27%, slightly down from 3.44% in the same quarter last year[36]. - The NIM (GAAP) for the current period was 3.27%, slightly down from 3.28% in the previous period[45]. Noninterest Income - Noninterest income increased to $94.1 million, up 7.9% driven by higher service charges, mortgage fees, and capital markets income[2][9]. - Noninterest income increased to $94,138,000 in Q3 2024 from $87,271,000 in Q2 2024[28]. - Total noninterest income for Q3 2024 was $94,138, up from $87,271 in Q2 2024 and $77,522 in Q1 2024, showing strong performance in fee-based services[31]. - Adjusted noninterest income for the three months ended September 30, 2024, was $94,214,000, compared to $87,269,000 in the previous quarter, reflecting a growth of 8.4%[46]. Efficiency and Ratios - The efficiency ratio was 53.8%, while the adjusted efficiency ratio improved to 51.2%[2][16]. - The efficiency ratio for Q3 2024 was 53.8%, a decrease from 57.2% in Q2 2024, indicating improved operational efficiency[28]. - The adjusted efficiency ratio improved to 51.2% for the three months ended September 30, 2024, compared to 52.6% in the previous quarter, highlighting better cost control[47]. - Tangible common equity to tangible assets increased to 7.4%, up from 7.2%[2][16]. - Tangible common equity to tangible assets ratio improved to 7.44% as of September 30, 2024, compared to 6.94% in the previous quarter[49]. Credit Losses and Risk Management - Provision for credit losses was $28.5 million, with net charge-offs of $17.5 million, or 19 basis points of average loans[2][9]. - Provision for credit losses was $28,497,000 in Q3 2024, compared to $36,214,000 in Q2 2024, indicating a decrease in expected credit losses[28]. - The allowance for credit losses on loans increased to $(380,840) thousand, up from $(366,335) thousand in the previous quarter, indicating a focus on risk management[32]. - Nonaccrual loans totaled $443,597,000 as of September 30, 2024, an increase from $340,181,000 in the previous quarter[42]. - The allowance for credit losses as a percentage of ending loans was 1.05% as of September 30, 2024, compared to 1.01% in the previous quarter[41]. Operational Adjustments - Full-time equivalent employees decreased to 4,105 in Q3 2024 from 4,267 in Q2 2024, indicating potential operational adjustments[29]. - The company plans to continue focusing on market expansion and new product development to drive future growth[31]. - The company incurred pre-tax merger-related charges of $6.9 million and $2.6 million in pre-tax separation expenses[2][4][16]. - Separation expenses for Q3 2024 were $2,646,000, with no expenses reported in Q2 2024, marking a new cost incurred[44].

Financial Performance - Net interest income for Q2 2024 was $388,421,000, an increase from $382,171,000 in Q2 2023, reflecting a growth of 1.3% year-over-year[168] - Noninterest income for Q2 2024 was $87,271,000, compared to $81,629,000 in Q2 2023, representing a growth of 6.5%[168] - Net income available to common shareholders for Q2 2024 was $117,196,000, slightly down from $151,003,000 in Q2 2023, a decrease of 22.4%[168] - Net interest income for the six months ended June 30, 2024, was $744,879, a decrease of 2.9% from $763,659 in 2023[170] - Noninterest income rose to $164,793, an increase of 8.7% compared to $152,310 in the previous year[170] - Net income available to common shareholders decreased to $233,446, down 20.5% from $293,569 in 2023[170] - Net income applicable to common shares for June 30, 2024, was $117,196 thousand, a slight increase from $116,250 thousand in the previous quarter[177] - Adjusted net income per common share, diluted, for June 30, 2024, was $0.46, compared to $0.51 in the previous quarter[177] Loan and Deposit Growth - Total loans increased to $36,150,513,000 in Q2 2024 from $32,432,473,000 in Q2 2023, marking a growth of 11.1%[168] - Total deposits rose to $39,999,228,000 in Q2 2024, compared to $36,231,315,000 in Q2 2023, reflecting a growth of 7.6%[168] - Total loans increased to $36,150,513, up 11.0% from $32,432,473 in 2023[170] - Total deposits increased by $2.3 billion to $40.0 billion at June 30, 2024, including $2.1 billion from the CapStar transaction; excluding this, deposits were up 2.4% annualized[184] - Loan balances increased by $2.5 billion to $36.2 billion at June 30, 2024, including $2.1 billion from the CapStar transaction; excluding this, loans were up 5.9% annualized[185] Credit Losses and Provisions - Provision for credit losses increased to $36,214,000 in Q2 2024 from $14,787,000 in Q2 2023, indicating a significant rise in expected credit losses[168] - Provision for credit losses increased significantly to $55,105, up from $28,224, reflecting a rise of 95.5%[170] - Provision for credit losses was $36.2 million, reflecting net charge-offs and loan growth, compared to $18.9 million in Q1 2024[187] - Total net charge-offs increased by 39.2% to $(14.045) million for the three months ended June 30, 2024, compared to $(10.092) million in the same period in 2023[211] - The allowance for credit losses on loans was $366.3 million at June 30, 2024, an increase from $307.6 million at December 31, 2023, reflecting $23.9 million for acquired PCD loans from the CapStar acquisition[256] Operational Efficiency - The efficiency ratio for June 30, 2024, was 57.17%, compared to 51.66% in the previous quarter, indicating a decline in operational efficiency[177] - The efficiency ratio for Q2 2024 was 57.73%, compared to 52.01% in Q2 2023, indicating increased operational costs[192] - Noninterest expense for the three months ended June 30, 2024, was $282.999 million, a 14.8% increase from $246.584 million in the same period of 2023[215] - Excluding merger-related expenses, noninterest expense increased to $263.6 million for the three months ended June 30, 2024, compared to $240.6 million for the same period in 2023[216] Asset Growth - Total assets reached $53,119,645,000 in Q2 2024, up from $48,496,755,000 in Q2 2023, an increase of 9.3%[168] - Total assets grew to $53,119,645, representing an increase of 9.0% from $48,496,755[170] - Total assets as of June 30, 2024, were $53,119,645 thousand, an increase from $49,534,918 thousand in the previous quarter[177] - Total assets increased to $53.1 billion as of June 30, 2024, up $4.0 billion from $49.1 billion at December 31, 2023, primarily due to the acquisition of CapStar[219] Shareholder Returns - The common dividend payout ratio increased to 38% in Q2 2024 from 27% in Q2 2023, indicating a higher return to shareholders[168] - The common dividend payout ratio increased to 36% from 28% year-over-year[170] Acquisitions and Expansions - The company operates 280 banking centers as of Q2 2024, an increase from 256 in Q2 2023, indicating expansion in physical presence[168] - The acquisition of CapStar on April 1, 2024, added approximately $3.1 billion in total assets, $2.1 billion in total loans, and $2.6 billion in deposits[191] - The company expanded its banking centers to 280, an increase from 256 in the previous year[170] Interest Rate Management - The company’s interest rate management process aims to maximize net interest income while maintaining acceptable limits for interest rate risk[260] - The company’s earnings are sensitive to changes in interest rates, which arise from normal business activities such as gathering deposits and extending loans[261] - The company uses a model to quantify the impact of changing interest rates on projected net interest income over a two-year cumulative horizon[262] - The company may adjust balance sheet mix, change product pricing strategies, or use derivative financial instruments to manage interest rate risk[263] Credit Quality - Total nonaccrual loans increased to $340.2 million, up from $274.8 million, indicating a rise in credit risk[248] - Under-performing assets rose to $353.7 million, representing 0.98% of total loans, a 12 basis point increase from 0.86%[249] - The allowance for credit losses on loans was 107.69% of nonaccrual loans, down from 111.93% at the end of 2023[250] - Total criticized and classified assets increased to $2.2 billion as of June 30, 2024, up by $447.0 million from December 31, 2023, primarily due to higher criticized commercial real estate loans and $73.1 million related to the CapStar acquisition[251] Future Projections - Projected net interest income for June 30, 2024, is $6,920,597 thousand, reflecting a year-over-year increase due to loan growth and rising interest rates[264] - Total interest income is expected to rise from $4,272,879 thousand in 2024 to $6,920,597 thousand in 2026, indicating a growth of approximately 62% over two years[264] - Projected interest expense is anticipated to increase from $1,174,919 thousand in 2024 to $3,698,294 thousand in 2026, representing a growth of about 215%[264] - Net interest income is projected to change from $3,097,960 thousand in 2024 to $3,222,303 thousand in 2026, with a percentage change from base of 4.43%[264]

Financial Performance - Net interest income for Q1 2024 was $356,458,000, a decrease of 2.6% from $364,408,000 in Q4 2023[155] - Noninterest income decreased to $77,522,000 in Q1 2024 from $100,094,000 in Q4 2023, reflecting a decline of 22.5%[155] - Net income available to common shareholders was $116,250,000 in Q1 2024, down from $128,446,000 in Q4 2023, a decrease of 9.1%[155] - Net income applicable to common shares for Q1 2024 was $116.3 million, or $0.40 per diluted common share, down from $128.4 million, or $0.44 per diluted common share in Q4 2023[166] - Adjusted net income for Q1 2024 was $130.8 million, or $0.45 per diluted common share, compared to $134.6 million, or $0.46 per diluted common share in Q4 2023[167] Credit Losses and Provisions - Provision for credit losses increased to $18,891,000 in Q1 2024 from $11,595,000 in Q4 2023, indicating a rise in expected credit losses[155] - Provision for credit losses rose by $7.3 million to $18.9 million, reflecting net charge-offs and loan growth[169] - Total provision for credit losses increased by 40.6% to $18.891 million for the three months ended March 31, 2024, from $13.437 million in the same period in 2023[188] - The allowance for credit losses on loans was $319.7 million at March 31, 2024, compared to $307.6 million at December 31, 2023, indicating a potential increase in provision expense due to loan growth and changes in credit quality[230] Loans and Deposits - Total loans increased to $33,623,319,000 in Q1 2024, up from $32,991,927,000 in Q4 2023, representing a growth of 1.9%[155] - Total deposits rose to $37,699,418,000 in Q1 2024, compared to $37,235,180,000 in Q4 2023, an increase of 1.2%[155] - Loan balances increased by $631.4 million to $33.6 billion, driven by disciplined commercial and commercial real estate loan growth[168] - Total deposits increased by $464.2 million to $37.7 billion, reflecting efforts to attract new client relationships[168] Efficiency and Ratios - The efficiency ratio was 58.34% in Q1 2024, slightly improved from 59.05% in Q4 2023[155] - The return on average assets decreased to 0.98% in Q1 2024 from 1.09% in Q4 2023[155] - The Tier 1 common equity ratio improved to 10.76% in Q1 2024 from 10.70% in Q4 2023[155] - The efficiency ratio increased to 58.34% from 52.81% year-over-year, indicating a decline in operational efficiency[173] Assets and Investments - Assets increased by $445.1 million to $49.5 billion at March 31, 2024, compared to $49.1 billion at December 31, 2023[194] - Earning assets grew by $534.2 million to $44.5 billion at March 31, 2024, compared to $43.9 billion at December 31, 2023[195] - The investment securities portfolio, including equity securities, was $10.2 billion, representing 23% of earning assets at both March 31, 2024, and December 31, 2023[197] Tax and Regulatory Compliance - The effective tax rate was 21.3% for the three months ended March 31, 2024, down from 22.0% for the same period in 2023[193] - The company exceeded regulatory capital requirements, with a Tier 1 capital ratio of 8.96% as of March 31, 2024, compared to 8.83% at the end of 2023[215] Risk Management - The company's stress testing process incorporates key risks including strategic, market, liquidity, credit, operational, regulatory, compliance, legal, and reputational risks[217] - Old National's interest rate risk management aims to maximize net interest income while maintaining adequate levels of funding and liquidity[234] Future Projections - Projected net interest income for March 31, 2024, is $6,360,479 thousand, an increase from $5,504,768 thousand in the previous year, reflecting growth due to loan growth and rising interest rates[239] - Total interest income is expected to rise from $3,155,024 thousand in March 31, 2023, to $6,360,479 thousand in March 31, 2024, indicating a year-over-year increase of approximately 102%[239] - Projected interest expense is anticipated to increase from $680,872 thousand in March 31, 2023, to $3,243,938 thousand in March 31, 2024, representing a significant rise of about 376%[239]