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]
OLD NATIONAL BAN(ONBPO) - 2024 Q3 - Quarterly Report