OLD NATIONAL BAN(ONBPP) - 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, demonstrating improved profitability[27] - Net income for the three months ended December 31, 2025, was $216,623,000, compared to $125,408,000 in the previous quarter, reflecting strong profitability growth[29] - The net income applicable to common shares for the quarter was $212,589, an increase from $178,533 in the prior quarter, reflecting a growth of approximately 18.5%[42] - The net income for the twelve months ended December 31, 2025, was $653,122, up from $523,053 for the same period last year, showing an increase of approximately 24.8%[42] Revenue and Income Sources - 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 from $130.461 million in Q3 2025, showing a decline in fee-based revenue streams[27] - Total revenue (FTE) for the latest quarter was $698,604 thousand, a slight decrease from $713,045 thousand in the previous quarter, representing a decline of 4.9%[44] - Noninterest income for the latest quarter was $109,759 thousand, down from $130,461 thousand in the previous quarter, reflecting a decrease of 15.9%[44] Loan and Deposit Growth - Total loans 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 reached $48.764 billion at the end of Q4 2025, up from $47.968 billion at the end of Q3 2025, indicating robust loan growth[27] - Total deposits at the end of the period 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, indicating stable deposit growth[27] Efficiency and Ratios - The efficiency ratio was reported at 51.6%, with an adjusted efficiency ratio of 46.0%, compared to 58.8% and 48.1% in the previous year[2][14] - The efficiency ratio improved to 51.6% in Q4 2025 from 58.8% in Q3 2025, reflecting better cost management[27] - Return on average tangible common equity (ROATCE) was 17.8%, with an adjusted ROATCE of 19.9%[2] - ROAE for the three months ended December 31, 2025, was 9.0%, an increase from 6.7% in the previous quarter[46] - ROATCE, adjusted, was 20.1% for the three months ended December 31, 2025, compared to 18.1% in the previous quarter[46] Credit Quality and Losses - Provision for credit losses was $32.7 million, with net charge-offs of $32.1 million, or 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, indicating a cautious approach to credit risk management[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 decreased to $521,245 thousand from $590,820 thousand in the previous quarter, showing a decline of 11.7%[39] - The net charge-offs (NCOs) for the quarter were $32,108 thousand, compared to $30,038 thousand in the previous quarter, reflecting an increase of 6.9%[39] Adjustments and Expenses - 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 related to merger charges for the quarter were $24,547, significantly lower than $69,274 in the previous quarter[42] - Adjusted total noninterest expense was $328,929 thousand, down from $343,219 thousand in the previous quarter, showing a reduction of 4.5%[44] Assets and Equity - Total assets increased to $72.152 billion in Q4 2025 from $71.210 billion in Q3 2025, showcasing overall growth in the balance sheet[27] - Total shareholders' equity increased to $8,494,788,000 from $8,126,387,000 year-over-year[28] - Average shareholders' common equity increased to $7,924,856 thousand as of December 31, 2025, up from $7,208,397 thousand in the previous quarter[46] - Tangible common equity to tangible assets ratio improved to 7.72% as of December 31, 2025, compared to 7.53% in the previous quarter[47]