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].
OLD NATIONAL BAN(ONBPO) - 2024 Q3 - Quarterly Results