Old National Bancorp Reports Fourth Quarter and Full-Year 2025 Results

Core Insights - Old National Bancorp reported strong fourth quarter earnings with net income applicable to common shares of $212.6 million and diluted EPS of $0.55, while adjusted net income was $241.0 million with adjusted EPS of $0.62 [1][4] Financial Performance - Full-year net income applicable to common shares reached $653.1 million, with diluted EPS of $1.79 and adjusted net income of $808.6 million, resulting in adjusted EPS of $2.21 [1][4] - The fourth quarter net interest income on a fully taxable equivalent basis was $588.8 million, with a net interest margin (NIM) of 3.65%, an increase of 1 basis point [2][11] - Pre-provision net revenue (PPNR) was reported at $312.3 million, with adjusted PPNR at $349.6 million, reflecting a 4% increase [2][11] Operational Highlights - 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][11] - Total loans reached $48.8 billion, an increase of $768.8 million or 6.4% annualized, driven by strong commercial loan production [2][11] - 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][11] Efficiency and Cost Management - Noninterest expense was $386.3 million, including $24.5 million in merger-related charges, while adjusted noninterest expense was $364.8 million [2][10] - The efficiency ratio was reported at 51.6%, with an adjusted efficiency ratio of 46.0%, indicating improved cost management [2][10] Credit Quality - The allowance for credit losses stood at $605.2 million, or 1.24% of total loans, with 30+ day delinquencies at 0.22% and nonaccrual loans at 1.07% of total loans [2][11] Capital Position - Preliminary regulatory Tier 1 common equity to risk-weighted assets was 11.08%, up 6 basis points, indicating a strong capital position [2][11]