OLD NATIONAL BAN(US:ONBPP)2025-07-22 11:05Financial 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 three months ended June 30, 2025, was $121,375, a decrease of 13.0% from $140,625 in the previous quarter[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 36.5% growth[51]. - The return on average assets (ROAA) was 0.77% for the three months ended June 30, 2025, down from 1.08% in the previous quarter[35]. - ROAE for Q2 2025 was 6.7%, a decrease from 9.1% in Q1 2025[51]. - ROATCE for Q2 2025 was 12.0%, down from 15.0% in Q1 2025[51]. Revenue and Income Sources - 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 $514,790,000, compared to $387,643 for the previous quarter, reflecting a significant increase of 32.7%[34]. - Noninterest income increased to $132,517 for the three months ended June 30, 2025, up from $93,794 in the previous quarter, representing 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]. - PPNR for Q2 2025 was $269,604,000, an increase of 23.5% from $218,326,000 in Q1 2025[49]. Asset and Loan Growth - Total assets reached $70,979,805 as of June 30, 2025, compared to $53,877,944 at the end of the previous quarter, indicating a growth of 31.7%[34]. - 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]. - The company reported total loans of $47,902,819 as of June 30, 2025, an increase from $36,413,944 at the end of the previous quarter, marking a growth of 31.5%[34]. - Total loans increased to $47,902,819,000 as of June 30, 2025, a rise of 31.7% from $36,413,944,000 in the same period last year[37]. - Average loans for the six months ended June 30, 2025, were $44,075,472,000, up from $36,284,059,000 for the same period in 2024, showing a growth of 21.0%[44]. Deposits and Funding - 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 increased to $54,357,683,000 as of June 30, 2025, a growth of 32.4% from $41,034,572,000 at the end of the previous year[37]. - Demand deposits rose to $11.57 billion, reflecting a strong liquidity position[41]. - Total interest-bearing deposits grew to $38.24 billion, with an interest expense of $240.09 million and an average yield of 2.52%[41]. Credit Quality and Provisions - Provision for credit losses was $106.8 million, including $75.6 million related to CECL Day 1 non-PCD provision expense[8][17]. - Net charge-offs were $26.5 million, or 24 basis points of average loans, with 30+ day delinquencies at 0.30%[17]. - The allowance for credit losses on loans was $565,109,000 as of June 30, 2025, compared to $401,932,000 in the previous year, indicating a significant increase in provisions[37]. - The provision for credit losses on loans was $99,263,000 for the three months ended June 30, 2025, compared to $31,026,000 for the previous quarter, indicating a significant rise in provisions[44]. - The allowance for credit losses on loans as a percentage of ending loans was 1.18% as of June 30, 2025, up from 1.10% on March 31, 2025[44]. Efficiency and Management - The efficiency ratio was 55.8%, while the adjusted efficiency ratio improved to 50.2%[2][17]. - The efficiency ratio improved to 55.8% for the three months ended June 30, 2025, compared to 53.7% in the previous quarter, indicating better cost management[35]. - Adjusted total noninterest expense for Q2 2025 was $289,850,000, compared to $224,258,000 in Q1 2025[49]. - Merger-related charges for Q2 2025 totaled $41,206,000, significantly higher than $5,856,000 in Q1 2025[49]. Capital and Equity - The company’s preliminary regulatory Tier 1 common equity to risk-weighted assets was 10.74%, down 88 basis points[2][24]. - Tangible common equity measures are highlighted as important capital adequacy metrics, excluding intangible assets from stockholders' equity[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 23.4% increase[52]. - Shareholders' equity increased to $7.45 billion, up from $6.42 billion in the prior quarter[41]. - Common shares outstanding increased to 391,818 as of June 30, 2025, from 319,236 as of March 31, 2025[52]. Management and Strategic Outlook - Tim Burke was appointed as President and COO, bringing nearly 30 years of banking experience to the role[4][6]. - Forward-looking statements indicate management's expectations regarding financial condition, profitability, and business plans, subject to various risks and uncertainties[30]. - The company anticipates potential impacts from competition, economic conditions, and the integration of the merger with Bremer[30]. - Risks include changes in liquidity, credit quality trends, and the ability to generate loans and gather deposits[30]. - Future business combinations may affect performance and financial condition, with integration challenges highlighted[30].