Financial Performance - Net interest income for Q3 2025 was $574,609,000, an increase of 11.6% compared to $514,790,000 in Q2 2025[188] - Net income available to common shareholders for Q3 2025 was $178,533,000, up 47% from $121,375,000 in Q2 2025[188] - Noninterest income for Q3 2025 was $130,461,000, a decrease from $132,517,000 in Q2 2025[188] - Net income applicable to common shares for Q3 2025 was $178.5 million, or $0.46 per diluted share, compared to $121.4 million, or $0.34 per diluted share, in Q2 2025[203] - Net interest income for the nine months ended September 30, 2025, was $1,477,042, an increase of 30% from $1,136,603 in 2024[190] - Noninterest income rose to $356,772, up 38% from $258,931 in the previous year[190] - Net income available to common shareholders was $440,533, up 18% from $373,214 in 2024[190] Credit Quality - Provision for credit losses decreased to $26,738,000 in Q3 2025 from $106,835,000 in Q2 2025, indicating improved credit quality[188] - Provision for credit losses increased significantly to $164,976, compared to $83,602 in 2024, reflecting a rise of 97%[190] - The allowance for credit losses on loans increased to $566,102 thousand as of September 30, 2025, from $366,667 thousand a year earlier, indicating a rise of 54.4%[220] - Net charge-offs on loans totaled $30.0 million for the three months ended September 30, 2025, compared to $17.5 million for the same period in 2024, with annualized net charge-offs to average loans at 0.25%[279] Asset and Loan Growth - Total loans reached $47,967,915,000 as of September 30, 2025, a slight increase from $47,902,819,000 in Q2 2025[188] - Total loans reached $48,175,464 thousand for the three months ended September 30, 2025, compared to $36,315,039 thousand for the same period in 2024, marking a 32.6% growth[220] - Total assets increased to $71,210,162,000 as of September 30, 2025, compared to $70,979,805,000 in Q2 2025[188] - Total assets grew to $71,136,787 thousand as of September 30, 2025, compared to $53,346,411 thousand a year prior, reflecting a 33.4% increase[220] - Total deposits increased by $648.5 million, or 5% annualized, to $55.0 billion at September 30, 2025, compared to June 30, 2025[205] - Total deposits reached $55.0 billion, reflecting a $14.2 billion increase or 34.7% compared to December 31, 2024, attributed to Bremer deposits and organic growth[265] Efficiency and Ratios - The efficiency ratio for Q3 2025 was 58.84%, compared to 55.80% in Q2 2025, indicating a slight decline in operational efficiency[188] - The efficiency ratio was reported at 56.43%, slightly higher than 56.37% in the previous year[190] - The efficiency ratio for Q3 2025 was 56.43%, slightly up from 56.37% in Q2 2025[213] - The Tier 1 common equity ratio improved to 11.02% as of September 30, 2025, up from 10.74% in Q2 2025[188] Acquisition Impact - The acquisition of Bremer Financial Corporation was completed on May 1, 2025, with a total consideration of $1.3 billion[212] - Average loans increased by $11.9 billion for the three months ended September 30, 2025, primarily due to the acquisition of Bremer loans totaling $11.2 billion[232] - Other income increased by $6.1 million and $38.1 million for the three and nine months ended September 30, 2025, respectively, primarily due to the acquisition of Bremer[239] - Goodwill and other intangible assets totaled $2.9 billion, an increase of $630.9 million from December 31, 2024, resulting from the Bremer acquisition[263] Funding and Liquidity - Total funding increased to $61.8 billion, a rise of $15.5 billion or 33.6% from December 31, 2024[265] - The company has access to $4,555,409,000 from the Federal Reserve discount window and $8,120,873,000 from the Federal Home Loan Bank[301] - Management believes the company can generate adequate liquidity to meet short-term and long-term requirements[301] - Liquidity management strategies include maintaining strategic and contingency liquidity plans to ensure sufficient funding for balance sheet growth[296] Risk Management - The company performs stress testing periodically to ensure sufficient capital during economic stress, evaluating decisions related to pricing, loan concentrations, and mergers[271] - The company’s risk management framework includes a Risk Appetite Statement addressing strategic, market, liquidity, credit, operational, and compliance risks[272] - The company’s interest rate management aims to maximize net interest income while maintaining acceptable limits for interest rate risk[287]
OLD NATIONAL BAN(ONBPO) - 2025 Q3 - Quarterly Report