OLD NATIONAL BAN(ONBPP) - 2025 Q3 - Quarterly Results

Financial Performance - Net income applicable to common shares for Q3 2025 was $178.5 million, with adjusted net income of $231.3 million, resulting in diluted EPS of $0.46 and adjusted EPS of $0.59[2][3] - Net income available to common shareholders increased to $178.533 million in Q3 2025, compared to $121.375 million in Q2 2025, marking a 47% increase[28] - Earnings per share (EPS) for Q3 2025 was $0.46, up from $0.34 in Q2 2025, reflecting a 35.3% growth[28] - The company reported a diluted adjusted EPS of $0.59, up from $0.53, reflecting an increase of 11.3%[44] - ROAE for Q3 2025 was reported at 9.0%, an increase from 6.7% in Q2 2025[47] - ROATCE for Q3 2025 was 15.9%, up from 12.0% in Q2 2025[47] Revenue and Income - Noninterest income for Q3 2025 was $130.461 million, slightly down from $132.517 million in Q2 2025[28] - Total revenue (FTE) reached $713,045 thousand, compared to $654,370 thousand in the prior quarter, marking a 9% growth[45] - Adjusted noninterest income was $130,454 thousand, compared to $111,557 thousand, showing a 16.5% increase[45] Loans and Deposits - Total loans at the end of the period amounted to $48.0 billion, up 0.6% annualized, with a 3.1% annualized increase when excluding loans acquired from Bremer[2][8] - Total loans reached $47.968 billion at the end of Q3 2025, a slight increase from $47.903 billion at the end of Q2 2025[28] - Total deposits at the end of the period were $55.0 billion, reflecting a 4.8% annualized growth, while core deposits increased by 5.8% annualized[2][8] - Total deposits rose to $55.006 billion in Q3 2025, up from $54.358 billion in Q2 2025[28] Credit Quality - Provision for credit losses was $26.7 million, with net charge-offs of $30.0 million, representing 25 basis points of average loans[2][8] - Provision for credit losses decreased significantly to $26.738 million in Q3 2025 from $106.835 million in Q2 2025, indicating improved credit quality[28] - The allowance for credit losses on loans increased to $572,178 thousand, compared to $565,109 thousand in the previous quarter, indicating a rise of 1.9%[31] - Nonaccrual loans totaled $590,820 thousand, slightly decreasing from $594,709 thousand in the previous quarter, a decline of 0.15%[40] Expenses and Efficiency - Noninterest expense totaled $445.7 million, including $69.3 million in merger-related charges, while adjusted noninterest expense was $376.5 million[2][15] - The efficiency ratio was reported at 58.8%, with an adjusted efficiency ratio of 48.1%[2][15] - The efficiency ratio improved to 58.8% in Q3 2025 from 55.8% in Q2 2025, indicating better cost management[28] - Noninterest expense was $445,734 thousand, compared to $384,766 thousand, representing a 15.9% increase, which may impact future profitability[45] Capital and Assets - Total assets increased to $71.210 billion in Q3 2025, compared to $70.980 billion in Q2 2025[28] - Total shareholders' equity as of September 30, 2025, was $8,309,271,000, up from $8,126,387,000 in the previous quarter[29] - Preliminary Tier 1 common equity to risk-weighted assets was 11.02%, an increase of 28 basis points[2][15] - Tangible common equity to tangible assets ratio improved to 7.53% as of September 30, 2025, up from 7.26% in June 2025[48] Growth and Production - Total commercial loan production for the quarter was $2.8 billion, marking a 20% increase from the previous quarter[2][8] - Total earning assets increased to $64.03 billion with a net interest margin of 5.78% for the three months ended September 30, 2025, compared to $59.06 billion and 5.64% in the previous quarter[35] - Total investments amounted to $14.70 billion, generating $155.69 million in income at a yield of 4.24%, up from $13.53 billion and 4.07% in the prior quarter[35] Mergers and Charges - Merger-related charges for the quarter were $69.27 million, up from $41.21 million in the previous quarter[43] - The company incurred merger-related charges of $69,274 thousand, compared to $41,206 thousand in the previous quarter, indicating ongoing integration costs[45]