OLD NATIONAL BAN(ONBPP) - 2024 Q3 - Quarterly Results

Financial Performance - Net income applicable to common shares for Q3 2024 was $139.8 million, with an 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 increased to $139,768,000 in Q3 2024 from $117,196,000 in Q2 2024, representing a 19.3% growth[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 company reported a diluted EPS of $0.44 for Q3 2024, compared to $0.37 in Q2 2024, reflecting a growth of 18.9%[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] Revenue and Income Sources - Noninterest income rose to $94,138,000 in Q3 2024, compared to $87,271,000 in Q2 2024, reflecting stronger fee-based revenue[28] - Total revenue for the three months ended September 30, 2024, was $492,006,000, compared to $482,032,000 for the same period in 2023, representing a 2.02% increase[46] - Noninterest income for the three months ended September 30, 2024, was $94,138,000, up from $87,271,000 in the prior year, reflecting an increase of 9.4%[46] Loans and Deposits - Total loans at the end of the period amounted to $36.5 billion, up 2.7% annualized, with average total loans increasing by $235.9 million[2][9] - Total loans reached $36,400,643 thousand, an increase of 2.1% from $36,150,513 thousand in the previous quarter[32] - Total deposits at the end of the period reached $40.8 billion, reflecting an increase of $0.8 billion, with core deposits rising by $1.0 billion, representing annualized growth rates of 8.5% and 10.1% respectively[2][9] - Total deposits rose to $40,845,746 thousand, reflecting a 2.1% increase from $39,999,228 thousand in the prior quarter[32] Credit Quality and Losses - Provision for credit losses was $28.5 million, with net charge-offs of $17.5 million, equating to 19 basis points of average loans[2][9] - Provision for credit losses decreased to $28,497,000 in Q3 2024 from $36,214,000 in Q2 2024, indicating improved credit quality[28] - The allowance for credit losses on loans increased to $(380,840) thousand, up from $(366,335) thousand in the previous quarter, indicating a rise in provisions for potential loan losses[32] - Nonaccrual loans amounted to $443,597,000 as of September 30, 2024, an increase from $340,181,000 in the previous quarter[42] Efficiency and Ratios - The efficiency ratio was reported at 53.8%, with an adjusted efficiency ratio of 51.2%, compared to 57.2% and 52.6% in the previous quarter[2][16] - The return on average tangible common equity was 16.0%, with an adjusted return of 16.8%[2][16] - The Tier 1 common equity ratio improved to 11.00% in Q3 2024 from 10.73% in Q2 2024[29] - The tangible common equity to tangible assets ratio improved to 7.4%, up from 7.2%[2][16] Market and Strategic Initiatives - The company plans to continue investing in new markets and attracting exceptional talent to enhance its franchise[1] - Notable items included $6.9 million in pre-tax merger-related charges and $2.6 million in pre-tax separation expenses[2][4][16] Assets and Capital - Total assets grew to $53,602,293,000 in Q3 2024 from $53,119,645,000 in Q2 2024, indicating a healthy balance sheet expansion[28] - Total shareholders' equity increased to $6,367,298 thousand, up from $5,239,537 thousand a year earlier, representing a growth of 21.5%[32] - The company maintained a strong capital position with shareholders' equity of $6,190,071 million, up from $5,294,072 million a year ago[36] Cost Management - The efficiency ratio improved to 53.8% in Q3 2024 from 57.2% in Q2 2024, reflecting better cost management[28] - Total noninterest expense for Q3 2024 was $272,283, a decrease from $282,999 in Q2 2024, indicating a reduction of 3.0%[31] - Noninterest expense for the three months ended September 30, 2024, was $272,283,000, a decrease from $282,999,000 in the same quarter of 2023, representing a reduction of 2.5%[46]