Old National Bancorp(US:ONB)2026-02-19 16:52Financial Performance - Old National's net income applicable to common shareholders for 2025 was $653.1 million, or $1.79 per diluted common share, with adjusted net income of $808.6 million, or $2.21 per diluted common share [230][231]. - Net income available to common shareholders increased to $653,122, reflecting a 24.8% growth compared to $523,053 in 2024 [239]. - The return on average common equity for Q4 2025 was 10.44%, up from 9.01% in Q3 2025 [237]. - Diluted net income per common share increased to $1.79 in 2025 from $1.68 in 2024, a growth of 6.5% [251]. - The effective tax rate was 20.5% in 2025, slightly down from 20.8% in 2024, influenced by tax benefits from tax credit investments [275]. Growth and Acquisitions - The completion of the Bremer acquisition on May 1, 2025, solidified Old National's position as a premier mid-size bank [230][233]. - Total deposits grew by 35% in 2025, with a loan-to-deposit ratio of 89% [230]. - The company plans to focus on disciplined organic growth and continued investment in technology and client-facing capabilities in 2026 [235]. - The company's assets grew to $72.2 billion at December 31, 2025, an increase of $18.6 billion from $53.6 billion at December 31, 2024, mainly due to the Bremer acquisition [276]. Income and Expenses - Net interest income increased by 34% to $2.1 billion, driven by strong loan growth and the Bremer acquisition [232]. - Noninterest income rose from $354.7 million in 2024 to $466.5 million in 2025, primarily due to the Bremer acquisition and higher mortgage banking revenue [232]. - Total noninterest expense reached $1.5 billion in 2025, a 35.7% increase from 2024, including $140.9 million of merger-related expenses [272]. - The total interest expense for 2025 was $1,211,979 thousand, compared to $1,070,868 thousand in 2024 [260]. Asset and Loan Growth - Old National's total loans reached $48.76 billion by December 31, 2025, up from $36.29 billion a year earlier [237]. - Total loans grew significantly to $48,764,162, a 34.4% increase from $36,285,887 in 2024 [239]. - Average loans, including loans held-for-sale, increased by $8.7 billion in 2025, primarily due to the acquisition of Bremer loans totaling $11.1 billion [265]. - The loan portfolio totaled $48.8 billion at December 31, 2025, reflecting a 34.4% increase from $36.3 billion at December 31, 2024 [283]. Capital and Equity - Shareholders' equity reached $8.5 billion, or 12% of total assets, at December 31, 2025, up from $6.3 billion at December 31, 2024, due to equity raised from the Bremer acquisition [305]. - Tangible book value per share grew by 15% in 2025, with a focus on driving further growth in 2026 [230][234]. - The tangible common book value per share rose to $13.71, compared to $11.91 in 2024, reflecting improved capital strength [239]. Credit Quality and Losses - Provision for credit losses increased to $197,721 in 2025, up from $110,619 in 2024, reflecting a rise of 78.5% [251]. - The allowance for credit losses on loans increased to $569.5 million at December 31, 2025, up from $392.5 million at December 31, 2024, reflecting adjustments related to the Bremer acquisition [297]. - Total charge-offs for the year 2025 amounted to $125.0 million, significantly higher than $71.3 million in 2024 [332]. - The net charge-offs to average loans ratio for total loans was 0.25% in 2025, compared to 0.17% in 2024, indicating a deterioration in credit quality [333]. Operational Metrics - The efficiency ratio improved to 55.10%, reflecting disciplined expense management [230]. - The efficiency ratio improved to 55.10%, down from 55.85% in 2024, indicating better cost management [239]. - The number of full-time equivalent employees increased to 4,971, up from 4,066 in 2024, indicating growth in operational capacity [239]. Risk Management - The company maintains frameworks to mitigate operational risks, including cybersecurity threats and internal control weaknesses [358]. - Compliance and regulatory risks are managed through established policies and oversight to ensure adherence to applicable laws and regulations [359]. - Legal risks are addressed through corporate governance practices that comply with legal requirements and market standards [360].