OLD NATIONAL BAN(ONBPO) - 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 rose to $212.589 million in Q4 2025, compared to $178.533 million in Q3 2025, marking a 19% increase[27] - Earnings per share (EPS) for Q4 2025 was $0.55, up from $0.46 in Q3 2025, reflecting improved profitability[27] - The company reported a net income of $653,122 for the twelve months ended December 31, 2025, an increase from $523,053, representing a growth of about 24.8%[42] Asset and Loan Growth - Total loans at period-end amounted to $48.8 billion, an increase of $768.8 million or 6.4% annualized, driven by strong commercial loan production[2][9] - Total loans increased to $48.764 billion at the end of Q4 2025, compared to $47.968 billion at the end of Q3 2025, showing growth in lending activities[27] - Total assets reached $72.152 billion at the end of Q4 2025, up from $71.210 billion at the end of Q3 2025, indicating overall asset growth[27] - Total assets increased to $72,151,967 thousand as of December 31, 2025, up from $71,210,162 thousand in the previous quarter, representing a growth of 1.32%[30] - Total loans reached $48,764,162 thousand, an increase of 1.66% from $47,967,915 thousand in the prior quarter[30] Deposits and Funding - Total deposits at period-end were $55.1 billion, reflecting a 0.6% annualized increase, while core deposits decreased by 3.2% annualized[2][9] - Total deposits rose to $55,088,195 thousand, slightly up from $55,006,184 thousand, indicating a marginal increase of 0.15%[30] - Noninterest-bearing demand deposits increased to $13,247,483 thousand, up 4.39% from $12,691,658 thousand in the previous quarter[30] - Federal Home Loan Bank advances increased to $6,237,375 thousand, up from $5,663,361 thousand, marking a growth of 10.12%[30] - Total borrowed funds rose to $7,451,367 thousand, an increase of 10.09% from $6,766,381 thousand in the previous quarter[30] Income and Expenses - 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] - Noninterest income decreased to $109.759 million in Q4 2025 compared to $130.461 million in Q3 2025, indicating a decline in fee-based revenue[27] - Noninterest expense totaled $386.3 million, including $24.5 million in merger-related charges, while adjusted noninterest expense was $364.8 million[2][14] - Total noninterest income for the three months ended December 31, 2025, was $109,759,000, down from $132,517,000 in the previous quarter[29] - Total noninterest expense for the same period was $386,320,000, a decrease from $384,766,000 in the prior quarter[29] Credit Quality and Losses - The 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] - Provision for credit losses increased to $32.745 million in Q4 2025 from $26.738 million in Q3 2025, reflecting a rise in expected credit losses[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 totaled $521,245 thousand, down from $590,820 thousand in the previous quarter, showing a decrease of 11.7%[39] - The ratio of NCOs to average loans was 0.27%, slightly up from 0.25% in the previous quarter, indicating a minor increase in credit losses relative to loan volume[39] Efficiency and Returns - Return on average tangible common equity (ROATCE) was 17.8%, with adjusted ROATCE at 19.9%[2] - The efficiency ratio improved to 51.6% in Q4 2025 from 58.8% in Q3 2025, demonstrating better cost management[27] - The return on average assets (ROAA) increased to 1.21% in Q4 2025, compared to 1.03% in Q3 2025, reflecting enhanced asset utilization[27] - The efficiency ratio improved to 51.6% in the latest quarter, compared to 58.8% in the previous quarter, and 55.1% for the full year, down from 55.9% last year[45] - ROAE (Return on Average Equity) for the three months ended September 30, 2025, was 9.0%, up from 6.7% in the same period last year, indicating a significant improvement[46]