Financial Performance - Net interest income for Q3 2025 was $574,609,000, an increase of 11.6% compared to $514,790,000 in Q2 2025[188] - Net income available to common shareholders for Q3 2025 was $178,533,000, up 47% from $121,375,000 in Q2 2025[188] - Noninterest income for Q3 2025 was $130,461,000, a decrease from $132,517,000 in Q2 2025[188] - Net income applicable to common shares for Q3 2025 was $178.5 million, or $0.46 per diluted share, compared to $121.4 million, or $0.34 per diluted share, in Q2 2025[203] - Net interest income for the nine months ended September 30, 2025, was $1,477,042, an increase of 30% from $1,136,603 in 2024[190] - Noninterest income rose to $356,772, up 38% from $258,931 in the previous year[190] - Net income available to common shareholders was $440,533, up 18% from $373,214 in 2024[190] Credit Quality - Provision for credit losses decreased to $26,738,000 in Q3 2025 from $106,835,000 in Q2 2025, indicating improved credit quality[188] - Provision for credit losses increased significantly to $164,976, compared to $83,602 in 2024, reflecting a rise of 97%[190] - The allowance for credit losses on loans increased to $566,102 thousand as of September 30, 2025, from $366,667 thousand a year earlier, indicating a rise of 54.4%[220] - Net charge-offs on loans totaled $30.0 million for the three months ended September 30, 2025, compared to $17.5 million for the same period in 2024, with annualized net charge-offs to average loans at 0.25%[279] Asset and Loan Growth - Total loans reached $47,967,915,000 as of September 30, 2025, a slight increase from $47,902,819,000 in Q2 2025[188] - Total loans reached $48,175,464 thousand for the three months ended September 30, 2025, compared to $36,315,039 thousand for the same period in 2024, marking a 32.6% growth[220] - Total assets increased to $71,210,162,000 as of September 30, 2025, compared to $70,979,805,000 in Q2 2025[188] - Total assets grew to $71,136,787 thousand as of September 30, 2025, compared to $53,346,411 thousand a year prior, reflecting a 33.4% increase[220] - Total deposits increased by $648.5 million, or 5% annualized, to $55.0 billion at September 30, 2025, compared to June 30, 2025[205] - Total deposits reached $55.0 billion, reflecting a $14.2 billion increase or 34.7% compared to December 31, 2024, attributed to Bremer deposits and organic growth[265] Efficiency and Ratios - The efficiency ratio for Q3 2025 was 58.84%, compared to 55.80% in Q2 2025, indicating a slight decline in operational efficiency[188] - The efficiency ratio was reported at 56.43%, slightly higher than 56.37% in the previous year[190] - The efficiency ratio for Q3 2025 was 56.43%, slightly up from 56.37% in Q2 2025[213] - The Tier 1 common equity ratio improved to 11.02% as of September 30, 2025, up from 10.74% in Q2 2025[188] Acquisition Impact - The acquisition of Bremer Financial Corporation was completed on May 1, 2025, with a total consideration of $1.3 billion[212] - Average loans increased by $11.9 billion for the three months ended September 30, 2025, primarily due to the acquisition of Bremer loans totaling $11.2 billion[232] - Other income increased by $6.1 million and $38.1 million for the three and nine months ended September 30, 2025, respectively, primarily due to the acquisition of Bremer[239] - Goodwill and other intangible assets totaled $2.9 billion, an increase of $630.9 million from December 31, 2024, resulting from the Bremer acquisition[263] Funding and Liquidity - Total funding increased to $61.8 billion, a rise of $15.5 billion or 33.6% from December 31, 2024[265] - The company has access to $4,555,409,000 from the Federal Reserve discount window and $8,120,873,000 from the Federal Home Loan Bank[301] - Management believes the company can generate adequate liquidity to meet short-term and long-term requirements[301] - Liquidity management strategies include maintaining strategic and contingency liquidity plans to ensure sufficient funding for balance sheet growth[296] Risk Management - The company performs stress testing periodically to ensure sufficient capital during economic stress, evaluating decisions related to pricing, loan concentrations, and mergers[271] - The company’s risk management framework includes a Risk Appetite Statement addressing strategic, market, liquidity, credit, operational, and compliance risks[272] - The company’s interest rate management aims to maximize net interest income while maintaining acceptable limits for interest rate risk[287]

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 increased to $178.533 million in Q3 2025, compared to $121.375 million in Q2 2025, a growth of 47%[28] - Earnings per share (EPS) for Q3 2025 was $0.46, up from $0.34 in Q2 2025, reflecting a 35.3% increase[28] - Net income for Q3 2025 was $182,567,000, compared to $125,408,000 in Q2 2025, reflecting a 45.5% increase[30] - Adjusted net income applicable to common shares, excluding intangibles amortization, reached $250,946,000 in Q3 2025, compared to $205,575,000 in Q2 2025, a growth of 22%[47] Revenue and Income - Total revenue (FTE) for the quarter was $713,045 thousand, an increase of 9.0% from $654,370 thousand in the previous quarter[45] - Noninterest income for Q3 2025 was $130.461 million, slightly down from $132.517 million in Q2 2025[28] - Total noninterest income for Q3 2025 was $130,461,000, slightly down from $132,517,000 in Q2 2025[30] Loans and Deposits - Total loans at the end of the period amounted to $48.0 billion, up 0.6% annualized, and 3.1% annualized excluding loans acquired from Bremer[2][8] - Total loans reached $47.968 billion at the end of Q3 2025, a slight increase from $47.903 billion at the end of Q2 2025[28] - Total deposits at the end of the period reached $55.0 billion, reflecting a 4.8% annualized increase, while core deposits grew by 5.8% annualized[2][8] - Total deposits increased to $55.006 billion in Q3 2025, up from $54.358 billion in Q2 2025[28] Expenses and Efficiency - Noninterest expense was $445.7 million, including $69.3 million in merger-related charges, while adjusted noninterest expense was $376.5 million[2][15] - The efficiency ratio was 58.8%, with an adjusted efficiency ratio of 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] - Adjusted total noninterest expense was $376,460 thousand, compared to $343,560 thousand in the previous quarter, reflecting an increase of 9.6%[45] Credit Quality - Provision for credit losses was $26.7 million, with net charge-offs of $30.0 million, or 25 basis points of average loans[2][8] - Provision for credit losses decreased significantly to $26.738 million in Q3 2025 from $106.835 million in Q2 2025, indicating improved credit quality[28] - The allowance for credit losses on loans increased to $572,178 thousand, compared to $565,109 thousand in the previous quarter, indicating 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] Capital and Ratios - Return on average tangible common equity (ROATCE) was 15.9%, with adjusted ROATCE at 20.1%[2][8] - The Tier 1 common equity ratio stood at 11.02% as of September 30, 2025, compared to 10.74% at the end of Q2 2025[29] - The total capital ratio was reported at 12.78% as of September 30, 2025, compared to 12.59% at the end of Q2 2025[29] - Tangible common equity to tangible assets ratio improved to 7.53% as of September 30, 2025, compared to 7.26% in June 2025[48] Shareholder Information - The company repurchased 1.1 million shares of common stock during the quarter[15] - Average shareholders' common equity increased to $7,924,856,000 in Q3 2025 from $7,208,397,000 in Q2 2025, reflecting a 10% rise[47] - Tangible common book value per share increased to $13.15 in Q3 2025 from $12.60 in Q2 2025, a 4.4% increase[48]

Financial Performance - Net interest income for Q2 2025 was $514,790,000, an increase from $388,421,000 in Q2 2024, representing a growth of 32.5% year-over-year[183] - Noninterest income rose to $132,517,000 in Q2 2025, compared to $87,271,000 in Q2 2024, reflecting a year-over-year increase of 51.8%[183] - The net income available to common shareholders for Q2 2025 was $121,375,000, a decrease from $117,196,000 in Q2 2024, reflecting a decline of 3.7%[183] - Net interest income for the six months ended June 30, 2025, was $902,433,000, an increase of 21.14% compared to $744,879,000 in 2024[185] - Noninterest income increased to $226,311,000 in 2025, up 37.24% from $164,793,000 in 2024[185] - The efficiency ratio improved to 54.92% in 2025 from 57.73% in 2024, indicating better cost management[185] - Return on average common equity decreased to 7.83% in 2025 from 8.45% in 2024[185] - The company reported a net interest income of $902,433 thousand for the six months ended June 30, 2025, compared to $744,879 thousand for the same period in 2024, an increase of 21.1%[215] Credit Losses and Provisions - Provision for credit losses increased to $106,835,000 in Q2 2025 from $36,214,000 in Q2 2024, indicating a significant rise in expected credit losses[183] - Provision for credit losses rose significantly to $138,238,000 in 2025 from $55,105,000 in 2024, reflecting a 150.36% increase[185] - Total provision for credit losses increased by 195.0% to $106.8 million for the three months ended June 30, 2025, compared to $36.2 million in the same period of 2024[226] - The allowance for credit losses on loans increased to $404,871 thousand in Q2 2025 from $331,043 thousand in Q2 2024, indicating a rise in provisions for potential loan losses[213] - The allowance for credit losses on loans was $565.1 million at June 30, 2025, up from $392.5 million at December 31, 2024, reflecting $90.4 million related to acquired PCD loans from the Bremer acquisition[275] Loans and Deposits - Total loans reached $47,902,819,000 as of June 30, 2025, up from $36,150,513,000 a year earlier, marking a growth of 32.6%[183] - Total deposits grew to $54,357,683,000 in Q2 2025, compared to $39,999,228,000 in Q2 2024, an increase of 36.0%[183] - Loan balances increased by $11.5 billion to $47.9 billion at June 30, 2025, with a 4% annualized increase excluding $11.2 billion of Bremer loans acquired[200] - Total deposits increased by $13.3 billion to $54.4 billion at June 30, 2025, with a 1% annualized increase excluding Bremer deposits and brokered deposits[200] - The loan portfolio totaled $47.9 billion as of June 30, 2025, representing a 32.0% increase from $36.3 billion at December 31, 2024[242] Assets and Equity - Total assets increased to $70,979,805,000 in Q2 2025 from $53,119,645,000 in Q2 2024, representing a growth of 33.7%[183] - Total assets grew to $65,486,130 thousand in Q2 2025, compared to $52,847,084 thousand in Q2 2024, marking a 23.9% increase[213] - Shareholders' equity increased to $8.1 billion as of June 30, 2025, up from $6.3 billion at the end of 2024, following the issuance of 50.2 million shares related to the Bremer acquisition[257] Acquisition Impact - Old National completed the acquisition of Bremer Financial Corporation on May 1, 2025, for a total consideration of $1.3 billion, including 50.2 million shares and $314.6 million in cash[206] - The acquisition of Bremer contributed significantly to the increase in net interest margin and overall financial performance for the three and six months ended June 30, 2025[221] - Other assets increased by $793.9 million, driven by Bremer's acquisition and higher investments in partnerships supporting affordable housing[254] Risk Management - The company performs stress testing periodically to ensure sufficient capital during economic stress, incorporating various key risks including credit and market risks[262] - The company’s risk management framework includes a Risk Appetite Statement to assess and mitigate major risks such as credit, market, and operational risks[263] - The company’s interest rate management aims to maximize net interest income while managing interest rate risk within acceptable limits[280] Future Projections - Projected net interest income for June 30, 2025, is $8,885,950 thousand, an increase from $4,880,115 thousand in 2024, reflecting a year-over-year growth driven by loan growth and asset repricing[284] - Total interest income is projected to reach $8,885,950 thousand by June 30, 2025, with loans contributing $7,409,983 thousand and interest-earning investments contributing $1,475,967 thousand[284] - Projected interest expense is expected to rise to $4,651,760 thousand by June 30, 2025, primarily due to increased deposits and borrowings[284] Employee and Operational Metrics - Full-time equivalent employees increased to 5,313 in 2025, up from 4,267 in 2024, indicating growth in workforce[185] - Noninterest expense for the three months ended June 30, 2025, was $384.8 million, a 36.0% increase from $283.0 million in the same period of 2024[232] - Salaries and employee benefits increased by 27.0% to $202.1 million for the three months ended June 30, 2025, compared to $159.2 million in 2024[232]

Financial Performance - Old National Bancorp reported Q2 2025 net income applicable to common shares of $121.4 million, with adjusted net income of $190.9 million, resulting in diluted EPS of $0.34 and adjusted EPS of $0.53[7][8]. - Net income available to common shareholders for the quarter was $121,375, down from $140,625 in the previous quarter, representing a decrease of 15.5%[34]. - Net income applicable to common shares for Q2 2025 was $121,375,000, a decrease of 13.7% from Q1 2025's $140,625,000[47]. - Adjusted net income applicable to common shares, excluding intangibles amortization, increased to $205,575,000 in Q2 2025 from $150,576,000 in Q1 2025, representing a growth of 36.5%[51]. - The efficiency ratio was 55.8%, while the adjusted efficiency ratio improved to 50.2%[2][17]. - The efficiency ratio for Q2 2025 improved to 55.8%, compared to 53.7% in Q1 2025, indicating a slight increase in operational efficiency[49]. - The company incurred merger-related charges of $41,206,000 in Q2 2025, significantly higher than $5,856,000 in Q1 2025[49]. Income and Revenue - Net interest income on a fully taxable equivalent basis reached $521.9 million, with a net interest margin of 3.53%, an increase of 26 basis points[2][17]. - Net interest income for the three months ended June 30, 2025, was $514,790, an increase from $387,643 in the previous quarter[34]. - Noninterest income rose to $132,517 for the quarter, compared to $93,794 in the previous quarter, reflecting a growth of 41.2%[34]. - Total revenue (FTE) for Q2 2025 was $654,370,000, representing a 34.4% increase from $486,797,000 in Q1 2025[49]. Loans and Deposits - Total loans at the end of the period were $48.0 billion, up $11.5 billion, with a loan growth rate of 3.7% annualized excluding loans acquired from Bremer[11]. - Total loans increased to $47,902,819 as of June 30, 2025, up from $36,413,944 at the end of the previous quarter, marking a growth of 31.5%[34]. - Total deposits at the end of the period were $54.4 billion, up $13.3 billion, with core deposits increasing by $11.6 billion[11]. - Total deposits rose to $54,357,683,000 as of June 30, 2025, up 32.4% from $41,034,572,000 in the previous quarter[37]. Credit Quality - Provision for credit losses was $106.8 million, including $75.6 million related to CECL Day 1 non-PCD provision expense[17][8]. - Net charge-offs were $26.5 million, or 24 basis points of average loans, with 30+ day delinquencies at 0.30%[17]. - Provision for credit losses increased to $106,835,000 for the three months ended June 30, 2025, compared to $31,403,000 for the same period in 2024, reflecting a significant rise in credit risk[36]. - Nonaccrual loans totaled $594,709,000 as of June 30, 2025, an increase from $469,211,000 on March 31, 2025, reflecting a 26.7% rise in nonperforming assets[45]. - The allowance for credit losses on loans was $404.87 million, an increase from $398.77 million in the previous quarter[41]. Capital and Equity - The preliminary regulatory Tier 1 common equity to risk-weighted assets ratio was 10.74%, down 88 basis points[2][24]. - Tangible common equity measures are highlighted as important capital adequacy metrics for assessing the Company's equity use and peer comparisons[28]. - Tangible common equity as of June 30, 2025, was $4,938,296,000, up from $4,001,667,000 as of March 31, 2025, indicating a growth of 23.4%[52]. - Shareholders' equity increased to $8,126,387,000 as of June 30, 2025, compared to $6,534,654,000 at the end of the previous quarter, reflecting a growth of 24.3%[37]. Management and Strategy - Tim Burke was appointed as President and COO, bringing nearly 30 years of banking experience to the role[4][5]. - The company successfully closed its partnership with Bremer on May 1, 2025, enhancing its balance sheet and capital position[1][3]. - The Company anticipates potential cost savings and synergies from the merger, though realization may take longer than expected[30]. - Risks include operational failures, cybersecurity threats, and changes in regulatory practices that could impact performance[30]. Forward-Looking Statements - Forward-looking statements include expectations regarding financial condition, profitability, and business plans, subject to various risks and uncertainties[30]. - Factors affecting future performance include competition, economic conditions, and the successful execution of the merger with Bremer[30]. - The Company does not undertake an obligation to update forward-looking statements after the earnings release date[32].

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].