Financial Performance - Old National Bancorp reported Q2 2025 net income applicable to common shares of $121.4 million, with adjusted net income of $190.9 million, resulting in diluted EPS of $0.34 and adjusted EPS of $0.53[7][8]. - Net income available to common shareholders for the quarter was $121,375, down from $140,625 in the previous quarter, representing a decrease of 15.5%[34]. - Net income applicable to common shares for Q2 2025 was $121,375,000, a decrease of 13.7% from Q1 2025's $140,625,000[47]. - Adjusted net income applicable to common shares, excluding intangibles amortization, increased to $205,575,000 in Q2 2025 from $150,576,000 in Q1 2025, representing a growth of 36.5%[51]. - The efficiency ratio was 55.8%, while the adjusted efficiency ratio improved to 50.2%[2][17]. - The efficiency ratio for Q2 2025 improved to 55.8%, compared to 53.7% in Q1 2025, indicating a slight increase in operational efficiency[49]. - The company incurred merger-related charges of $41,206,000 in Q2 2025, significantly higher than $5,856,000 in Q1 2025[49]. Income and Revenue - Net interest income on a fully taxable equivalent basis reached $521.9 million, with a net interest margin of 3.53%, an increase of 26 basis points[2][17]. - Net interest income for the three months ended June 30, 2025, was $514,790, an increase from $387,643 in the previous quarter[34]. - Noninterest income rose to $132,517 for the quarter, compared to $93,794 in the previous quarter, reflecting a growth of 41.2%[34]. - Total revenue (FTE) for Q2 2025 was $654,370,000, representing a 34.4% increase from $486,797,000 in Q1 2025[49]. Loans and Deposits - Total loans at the end of the period were $48.0 billion, up $11.5 billion, with a loan growth rate of 3.7% annualized excluding loans acquired from Bremer[11]. - Total loans increased to $47,902,819 as of June 30, 2025, up from $36,413,944 at the end of the previous quarter, marking a growth of 31.5%[34]. - Total deposits at the end of the period were $54.4 billion, up $13.3 billion, with core deposits increasing by $11.6 billion[11]. - Total deposits rose to $54,357,683,000 as of June 30, 2025, up 32.4% from $41,034,572,000 in the previous quarter[37]. Credit Quality - Provision for credit losses was $106.8 million, including $75.6 million related to CECL Day 1 non-PCD provision expense[17][8]. - Net charge-offs were $26.5 million, or 24 basis points of average loans, with 30+ day delinquencies at 0.30%[17]. - Provision for credit losses increased to $106,835,000 for the three months ended June 30, 2025, compared to $31,403,000 for the same period in 2024, reflecting a significant rise in credit risk[36]. - Nonaccrual loans totaled $594,709,000 as of June 30, 2025, an increase from $469,211,000 on March 31, 2025, reflecting a 26.7% rise in nonperforming assets[45]. - The allowance for credit losses on loans was $404.87 million, an increase from $398.77 million in the previous quarter[41]. Capital and Equity - The preliminary regulatory Tier 1 common equity to risk-weighted assets ratio was 10.74%, down 88 basis points[2][24]. - Tangible common equity measures are highlighted as important capital adequacy metrics for assessing the Company's equity use and peer comparisons[28]. - Tangible common equity as of June 30, 2025, was $4,938,296,000, up from $4,001,667,000 as of March 31, 2025, indicating a growth of 23.4%[52]. - Shareholders' equity increased to $8,126,387,000 as of June 30, 2025, compared to $6,534,654,000 at the end of the previous quarter, reflecting a growth of 24.3%[37]. Management and Strategy - Tim Burke was appointed as President and COO, bringing nearly 30 years of banking experience to the role[4][5]. - The company successfully closed its partnership with Bremer on May 1, 2025, enhancing its balance sheet and capital position[1][3]. - The Company anticipates potential cost savings and synergies from the merger, though realization may take longer than expected[30]. - Risks include operational failures, cybersecurity threats, and changes in regulatory practices that could impact performance[30]. Forward-Looking Statements - Forward-looking statements include expectations regarding financial condition, profitability, and business plans, subject to various risks and uncertainties[30]. - Factors affecting future performance include competition, economic conditions, and the successful execution of the merger with Bremer[30]. - The Company does not undertake an obligation to update forward-looking statements after the earnings release date[32].
OLD NATIONAL BAN(ONBPO) - 2025 Q2 - Quarterly Results