Financial Performance - Net interest income for Q2 2025 was $514,790,000, an increase from $388,421,000 in Q2 2024, representing a growth of 32.5% year-over-year[183] - Noninterest income rose to $132,517,000 in Q2 2025, compared to $87,271,000 in Q2 2024, reflecting a year-over-year increase of 51.8%[183] - The net income available to common shareholders for Q2 2025 was $121,375,000, a decrease from $117,196,000 in Q2 2024, reflecting a decline of 3.7%[183] - Net interest income for the six months ended June 30, 2025, was $902,433,000, an increase of 21.14% compared to $744,879,000 in 2024[185] - Noninterest income increased to $226,311,000 in 2025, up 37.24% from $164,793,000 in 2024[185] - The efficiency ratio improved to 54.92% in 2025 from 57.73% in 2024, indicating better cost management[185] - Return on average common equity decreased to 7.83% in 2025 from 8.45% in 2024[185] - The company reported a net interest income of $902,433 thousand for the six months ended June 30, 2025, compared to $744,879 thousand for the same period in 2024, an increase of 21.1%[215] Credit Losses and Provisions - Provision for credit losses increased to $106,835,000 in Q2 2025 from $36,214,000 in Q2 2024, indicating a significant rise in expected credit losses[183] - Provision for credit losses rose significantly to $138,238,000 in 2025 from $55,105,000 in 2024, reflecting a 150.36% increase[185] - Total provision for credit losses increased by 195.0% to $106.8 million for the three months ended June 30, 2025, compared to $36.2 million in the same period of 2024[226] - The allowance for credit losses on loans increased to $404,871 thousand in Q2 2025 from $331,043 thousand in Q2 2024, indicating a rise in provisions for potential loan losses[213] - The allowance for credit losses on loans was $565.1 million at June 30, 2025, up from $392.5 million at December 31, 2024, reflecting $90.4 million related to acquired PCD loans from the Bremer acquisition[275] Loans and Deposits - Total loans reached $47,902,819,000 as of June 30, 2025, up from $36,150,513,000 a year earlier, marking a growth of 32.6%[183] - Total deposits grew to $54,357,683,000 in Q2 2025, compared to $39,999,228,000 in Q2 2024, an increase of 36.0%[183] - Loan balances increased by $11.5 billion to $47.9 billion at June 30, 2025, with a 4% annualized increase excluding $11.2 billion of Bremer loans acquired[200] - Total deposits increased by $13.3 billion to $54.4 billion at June 30, 2025, with a 1% annualized increase excluding Bremer deposits and brokered deposits[200] - The loan portfolio totaled $47.9 billion as of June 30, 2025, representing a 32.0% increase from $36.3 billion at December 31, 2024[242] Assets and Equity - Total assets increased to $70,979,805,000 in Q2 2025 from $53,119,645,000 in Q2 2024, representing a growth of 33.7%[183] - Total assets grew to $65,486,130 thousand in Q2 2025, compared to $52,847,084 thousand in Q2 2024, marking a 23.9% increase[213] - Shareholders' equity increased to $8.1 billion as of June 30, 2025, up from $6.3 billion at the end of 2024, following the issuance of 50.2 million shares related to the Bremer acquisition[257] Acquisition Impact - Old National completed the acquisition of Bremer Financial Corporation on May 1, 2025, for a total consideration of $1.3 billion, including 50.2 million shares and $314.6 million in cash[206] - The acquisition of Bremer contributed significantly to the increase in net interest margin and overall financial performance for the three and six months ended June 30, 2025[221] - Other assets increased by $793.9 million, driven by Bremer's acquisition and higher investments in partnerships supporting affordable housing[254] Risk Management - The company performs stress testing periodically to ensure sufficient capital during economic stress, incorporating various key risks including credit and market risks[262] - The company’s risk management framework includes a Risk Appetite Statement to assess and mitigate major risks such as credit, market, and operational risks[263] - The company’s interest rate management aims to maximize net interest income while managing interest rate risk within acceptable limits[280] Future Projections - Projected net interest income for June 30, 2025, is $8,885,950 thousand, an increase from $4,880,115 thousand in 2024, reflecting a year-over-year growth driven by loan growth and asset repricing[284] - Total interest income is projected to reach $8,885,950 thousand by June 30, 2025, with loans contributing $7,409,983 thousand and interest-earning investments contributing $1,475,967 thousand[284] - Projected interest expense is expected to rise to $4,651,760 thousand by June 30, 2025, primarily due to increased deposits and borrowings[284] Employee and Operational Metrics - Full-time equivalent employees increased to 5,313 in 2025, up from 4,267 in 2024, indicating growth in workforce[185] - Noninterest expense for the three months ended June 30, 2025, was $384.8 million, a 36.0% increase from $283.0 million in the same period of 2024[232] - Salaries and employee benefits increased by 27.0% to $202.1 million for the three months ended June 30, 2025, compared to $159.2 million in 2024[232]
OLD NATIONAL BAN(ONBPO) - 2025 Q2 - Quarterly Report