OLD NATIONAL BAN(ONBPP) - 2024 Q1 - Quarterly Report

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] - Return on average common equity decreased to 8.74% from 11.58% year-over-year[173] Credit Quality - 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] - Non-performing loans to ending loans increased to 0.98% in Q1 2024 from 0.83% in Q4 2023, indicating a rise in credit quality concerns[155] - Net charge-offs on loans totaled $11.8 million for the three months ended March 31, 2024, down from $16.4 million for the same period in 2023, resulting in an annualized net charge-off rate of 0.14%[225] - 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 continued increase in provision expense due to loan growth[230] - Under-performing assets as a percentage of total loans rose to 1.01% at March 31, 2024, a 15 basis point increase from 0.86% at December 31, 2023[222] Loan and Deposit Growth - Total loans increased to $33,623,319,000 as of March 31, 2024, compared to $32,991,927,000 at the end of Q4 2023, representing a growth of 1.9%[155] - Total deposits rose to $37,699,418,000 in Q1 2024 from $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 rose by $464,238,000 to $37,699,418,000, with a notable increase in money market deposits by 7.0%[211] Efficiency and Cost Management - The efficiency ratio for Q1 2024 was 58.34%, slightly improved from 59.05% in Q4 2023, suggesting better cost management[155] - Noninterest expense decreased by $21.9 million, including a $13.3 million non-cash expense related to pension assets distribution[171] - The efficiency ratio for the three months ended March 31, 2024, was 58.34%, compared to 52.81% in the same period of 2023[173] Capital and Liquidity - The Tier 1 common equity ratio improved to 10.76% in Q1 2024 from 10.70% in Q4 2023, indicating stronger capital adequacy[155] - Old National exceeded regulatory capital requirements, with a Tier 1 capital to total average assets ratio of 8.96% as of March 31, 2024, compared to 8.83% at December 31, 2023[215] - The company maintains available liquid funds of $313,936 thousand at the parent company level and $13,681,114 thousand at the subsidiary level as of March 31, 2024[249] Future Projections - Projected net interest income for March 31, 2024, is $6,360,479 thousand, an increase from $5,504,768 thousand in 2023, reflecting growth due to loan growth and rising interest rates[239] - Total interest income is expected to rise from $3,155,024 thousand in 2023 to $6,360,479 thousand in 2024, indicating a year-over-year increase of approximately 102%[239] - Projected interest expense is anticipated to increase from $680,872 thousand in 2023 to $3,243,938 thousand in 2024, representing a significant rise of about 376%[239] Asset Management - 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]