Old National Bancorp(ONB) - 2025 Q4 - Annual Results

Financial Performance - Fourth quarter 2025 net income applicable to common shares was $212.6 million, with adjusted net income of $241.0 million, resulting in diluted EPS of $0.55 and adjusted EPS of $0.62[1][2][3] - Full-year 2025 net income applicable to common shares reached $653.1 million, with diluted EPS of $1.79 and adjusted EPS of $2.21[1] - Net income available to common shareholders for Q4 2025 was $212.589 million, compared to $178.533 million in Q3 2025 and $121.375 million in Q2 2025[27] - Net income for the three months ended December 31, 2025, was $216,623,000, up from $182,567,000 in the previous quarter, representing a 18.3% increase[29] - Net income applicable to common shares for the quarter was $212,589, an increase from $178,533, reflecting a growth of approximately 19%[42] - The company reported a net income of $653,122 for the twelve months ended December 31, 2025, compared to $523,053 for the previous year, representing a growth of about 24.8%[42] Loan and Deposit Growth - Total loans at period-end increased to $48.8 billion, reflecting a growth of $768.8 million or 6.4% annualized, driven by strong commercial loan production[2][9] - Total loans at the end of Q4 2025 reached $48.764 billion, up from $47.968 billion at the end of Q3 2025[27] - Total deposits at period-end were $55.1 billion, up 0.6% annualized, while core deposits decreased by 3.2% annualized[2][9] - Total deposits were $55.088 billion at the end of Q4 2025, slightly up from $55.006 billion in Q3 2025[27] - Demand deposits rose to $13,318,459 million, indicating strong customer confidence and liquidity[34] Interest Income and Margin - Net interest income on a fully taxable equivalent basis was $588.8 million, with a net interest margin of 3.65%, up 1 basis point[2][9] - Net interest income for Q4 2025 was $580.832 million, up from $574.609 million in Q3 2025, and significantly higher than $514.790 million in Q2 2025[27] - The company reported a net interest margin (NIM) of 3.60% for the latest quarter, slightly up from 3.59% in the previous quarter, and 3.49% for the twelve months, compared to 3.26% last year[43] Efficiency and Profitability Ratios - The efficiency ratio was reported at 51.6%, while the adjusted efficiency ratio improved to 46.0%[2][14] - Return on average tangible common equity (ROATCE) was 17.8%, with an adjusted ROATCE of 19.9%[2] - The efficiency ratio improved to 51.6% for the latest quarter, down from 58.8% in the previous quarter, and 55.1% for the twelve months, compared to 55.9% last year[45] - The company reported a return on average equity (ROAE) of 9.0% for the three months ended September 30, 2025, compared to 6.7% in the same period last year[46] Credit Quality and Loss Provisions - Provision for credit losses was $32.7 million, with net charge-offs of $32.1 million, representing 27 basis points of average loans[2][9] - The provision for credit losses in Q4 2025 was $32.745 million, compared to $26.738 million in Q3 2025 and $106.835 million in Q2 2025[27] - The allowance for credit losses on loans was $569,520 thousand, showing a slight decrease from $572,178 thousand in the previous quarter[30] - Nonaccrual loans amounted to $521,245 thousand, a decrease from $590,820 thousand in the prior quarter, showing a reduction of 11.7%[39] - The ratio of allowance for credit losses on loans to ending loans was 1.17%, down from 1.19% in the previous quarter[39] Operational Metrics - Total assets increased to $72.152 billion in Q4 2025 from $71.210 billion in Q3 2025[27] - The Tier 1 common equity ratio at the end of the period was 11.08%, slightly up from 11.02% in the previous quarter[28] - Full-time equivalent employees decreased to 4,971 from 5,243 in the previous quarter[28] - The company reported 346 banking centers, a decrease from 351 in the previous quarter[28] Adjustments and Charges - The company incurred notable pre-tax charges of $24.5 million related to merger expenses and a $15.9 million loss from the termination of a pension plan[4][14] - Adjustments for merger-related charges totaled $18,651, down from $52,780, indicating a reduction of about 64.7%[42] - The total adjustments for the quarter amounted to $28,385, compared to $52,775 in the previous quarter, a decrease of approximately 46.3%[42] Future Outlook - The company plans to continue focusing on market expansion and new product development to drive future growth[46]