OLD NATIONAL BAN(ONBPP) - 2024 Q4 - Annual Results

Financial Performance - 4Q24 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 year-over-year increase of 28.9%[32] - The diluted EPS for Q4 2024 was $0.47, up from $0.40 in Q4 2023, representing a growth of 17.5%[32] - The company reported a net income of $523,053 for the twelve months ended December 31, 2024, compared to $565,857 for the previous year, reflecting a decline of 7.6%[44] - 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 5.5%[45] - Net income applicable to common shares for the three months ended June 30, 2024, was $139,768, compared to $117,196 for the previous quarter, representing an increase of 19.8%[44] Deposits and Loans - Total deposits at period-end were $40.8 billion, consistent with September 30, 2024; core deposits increased by 1.9% annualized[2][9] - Total loans at period-end were $36.3 billion, down 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, slightly down from $36,400,643,000 at the end of Q3 2024[32] - Total loans reached $36,285,887 thousand, up from $32,991,927 thousand year-over-year, representing an increase of about 10.00%[36] - Total deposits at the end of Q4 2024 were $40,823,560,000, an increase from $37,699,418,000 in Q4 2023, reflecting a growth of 5.6%[32] - Demand deposits decreased to $9,424,577 from $10,633,806, indicating a shift in customer deposit behavior[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 year-over-year growth of 10.6%[32] - The net interest margin (GAAP) decreased to 3.26% from 3.49% year-over-year, while the net interest rate spread narrowed to 2.61% from 2.93%[41] - Total interest-bearing deposits increased to $31.64 billion, with an average yield of 2.71%[39] - The net interest rate spread improved to 2.64% from 2.62% in the prior quarter[39] Credit Losses 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 expected credit losses[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 of about 27.67%[36] - The allowance for credit losses (ACL) on loans to end-of-period (EOP) loans was 1.08% as of December 31, 2024, compared to 1.05% in the previous quarter[42] Noninterest Income and Expenses - Noninterest income for Q4 2024 reached $95,766,000, up from $77,522,000 in Q4 2023, reflecting a growth of 23.5% year-over-year[32] - Noninterest expense was $276.8 million, including $8.1 million of merger-related charges; adjusted noninterest expense was $268.7 million[2][15] - Noninterest expense for the three months ended December 31, 2024, was $276,824,000, compared to $272,283,000 in the previous quarter, showing an increase of 1.94%[46] - Adjusted total noninterest expense for the twelve months ended December 31, 2024, was $1,038,140,000, compared to $969,205,000 in the previous year, representing a 7.1% increase[46] Efficiency and Ratios - Efficiency ratio was 54.4%; adjusted efficiency ratio was 51.8%[2][15] - The efficiency ratio for Q4 2024 was 54.4%, improving from 58.3% in Q4 2023, indicating better cost management[32] - The adjusted efficiency ratio for the three months ended December 31, 2024, was 51.8%, compared to 51.2% in the previous quarter, indicating improved cost management[47] - Return on average tangible common equity (ROATCE) was 16.4%; adjusted ROATCE was 17.0%[2] Assets and Equity - Total assets as of Q4 2024 were $53,552,272,000, compared to $49,534,918,000 at the end of Q4 2023, showing a growth of 8.1%[32] - Total shareholders' equity increased to $6,340,350 thousand, compared to $5,562,900 thousand a year ago, marking a growth of approximately 13.93%[36] - Shareholders' equity rose to $6.34 billion, compared to $6.19 billion in the previous quarter[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, indicating a growth of 2.5%[48] Regulatory Capital - Preliminary regulatory Tier 1 common equity to risk-weighted assets was 11.38%, up 38 basis points[2][15] - Tier 1 common equity ratio at the end of the period was 11.38%, up from 10.70% in the previous year[33] - Total capital ratio at the end of the period was 13.37%, compared to 12.64% in the previous year[33]